Demand for PET containers continues to exceed supply

(Recycling Today) -- Demand for polyethylene terephthalate (PET) bottles and recycled PET (RPET) continues to outpace supply. With additional RPET production capacity coming online recently and announcements of future expansions on the part of companies such as US Fibers and Perpetual Recycling Solutions, demand is likely to continue exceeding supply, which will affect pricing for RPET and PET bales.

“The demand for bottles to recycle and RPET continues to grow in the market as more manufacturers and products continue to look for opportunities to create and promote sustainability and a green story regarding their product offerings,” Turner Plunkett, president of the board of directors at Clear Path Recycling LLC, Fayetteville, N.C., says.

Clear Path is a joint venture between Shaw Industries Group Inc. and DAK Americas LLC created to recycle post-consumer PET bottles to produce RPET flake. Shaw Industries is a carpet manufacturer and floor covering provider, while DAK Americas produces polyester staple fiber PET resin.

While PET containers continue to grow in terms of market share, the recovery rate for this material has been holding fairly steady.
MRC

MOSCOW (MRC) -- Lukoil plans in early August to stop the petrochemical complex Karpatneftekhim (Ukraine) for scheduled turnaround. Together with the scheduled turnaround the company aims to make total overhaul of some production, as per MRC analysts.

Lukoil Group in the first week of August plans to stop on the turnaround its petrochemical complex in Ukraine. Petrochemical complex Karpatneftekhim (Kalush, Ivano-Frankivsk region) consists of ethylene production (capacity of 300,000 tonnes), production of high-density polyethylene (capacity of 100,000 tonnes per year), production of suspension PVC (capacity of 300,000 tonnes per year), and caustic soda (200,000 tonnes per year).

The 30 days preventive maintenance will involve the overhaul of ethylene production. The company management did not exclude that the duration of the shutdown may be prolonged, and it will also depend upon the state's position in relation to the company. According to CEO of Karpatneftekhim, the company suffers from non repayment of VAT from the government and the import duties on oil and gas feedstock for ethylene production. The company also incurs losses from cheap imports of suspension PVC to Ukraine, including the material from North American producers.

Last fall, a group of Ukrainian deputies have submitted to Parliament a bill to impose a 5% duty on the import of unmixed PVC to Ukraine. In mid-May, after the first reading the amendments were adopted, and 5% duties were imposed on imports of unmixed PVC. Further it has not moved. Nothing changed after that.

Following the results of 2011, Karpatneftekhim produced about 102,700 tonnes of HDPE and 83,800 tonnes of suspension PVC. Over the first six months of 2012, these figures amounted to 54,900 tonnes and 92,700 tonnes, respectively.
MRC

MOSCOW (MRC) -- PE import to Russia has kept growing steadily since January. In June PE import rose to the record level of 64,700 tonnes. Over the past six months the total PE import has reached the level of 331,000 tonnes, up 16% year-on-year, report MRC analysts.
In June Russian traders dramatically increased import volumes of PE to the domestic market. Following the results of last month import supply surged up to the record level of 64,700 tonnes, up 11% from May. The main increase was in the import of HDPE.

HDPE import exceeded 35,000 tonnes last month, up 15% from May. PE supply for pipe production made 12,000 tonnes and film HDPE made about 8,000 tonnes out of the total amount. Over the past six months HDPE import amounted to about 175,000 tonnes, up 14% year-on-year.

LDPE import totaled to about 11,800 tonnes. As expected, the main growth was in PE supply from Belarus. Total year-to-date import volumes of LDPE rose by 21% and made about 61,100 tonnes.

In June LLDPE import grew by 13% from May and reached the levell of 14,000 tonnes. The share of Middle-East PE makers increased up to 37% in the total volume of LLDPE import. The year-to-date LLDPE import to Russia made about 73,400 tonnes.

In general, total year-to-date import volumes of PE and ethylene copolymers to Russia made about 331,000 tonnes, up 16% year-on-year.

MRC

MOSCOW (MRC) – Last week buying activity grew in the PP market on increase in oil and PP quotations. Polyethylene prices also went up in the Asian market.

Over the past week PP prices surged by USD20-40/tonne, report MRC analysts.

Last week buying activity increased dramatically in the Asian market. Rise in oil and propylene quotations made local traders replenish their PP stock inventories. This resulted in a price rise by USD20-40/tonne by the end of the week.

Despite the price growth market participants doubt that the surge of prices will last long. The Central Bank of China slashed again interest rate on loans which gives rise to many issues regarding the further economical growth of the country. At the same time almost all the market participants are unanimous in their belief that demand for PP will keep growing till September (the peak month in the season).

Last week PP-homo prices increased by USD30-40% and reached the average level of USD1,350/tonne, CFR. Bid-offers for PP copolymer grew by USD20-40/tonne and varied around USD1,370/tonne, CFR.
MRC

(Converting Quarterly) -- Allentown, PA-based Filmtech Corp., a member of the Sigma Plastics Group and a leading maker of multilayer cast films, will expand its PA site by 50,000 sq ft to accommodate increased production brought on by a new Davis-Standard cast-film line and two high-speed winders. The addition and increased capacity is expected to be online by early 2013.

Filmtech also has announced that MJ Quinn & Co. has joined its sales team. Mike Quinn brings 40 years of experience serving the hygienic disposables market to Filmtech and will be an integral part of aligning the new capacity with the market.

Filmtech produces cast agricultural, industrial and hygienic films for the North American market. Sigma Plastics chairman/CEO Alfred Teo said, "This expansion and the hiring of MJ Quinn and Co. is part of our ongoing commitment and desire to grow our specialty film business here in North America."

Filmtech Corporation, Inc. is a flexible packaging supplier to the meat, cheese, seafood, coffee, hotel, restaurant and medical industries
MRC