US PET exporters were trying to export PET bottle resin to Europe as BP's PTA force majeure was pushing up resin prices and opening opportunities for imports, industry sources said Thursday.
"The lack of domestic (PET) production is requiring imports at sky-high prices," a European PET trader said.
The trader said was selling at Eur1,450/mt ($1,984/mt), although no converters could confirm buying at that level this week.
Offers out of the US were heard at 80 cents/lb ($1,764/mt) FOB US East Coast. Freight from the US East Coast to the UK was talked at $70/mt.
"I can work with the buyer on the price, too, it's negotiable," the trader said.
"Material from Brazil and the US has been going there (Europe)," another source said.
Europe was short PTA due to BP's prolonged force majeure in Geel, Belgium. BP first declared force majeure in Geel on December 11, 2010 from trouble with an agitator at its No 2 plant. The FM was shortly lifted and then re-instituted later in the month when the problem resurfaced.
This week, BP declared a force majeure at its PTA 3 plant after finding problem with an agitator on this plant, a BP spokesman said.
The Geel PTA plant is made up of 3 plants with a total capacity of 1.35 mil mt/year.
One European PET producer who said his production would be limited by at least 20% in February and March by the PTA shortage said converters have no choice but to pay a higher price for PET.
"They don't have an alternative. Maybe those who can't support it [the price increase] will be out of the market," he said.
