Labour issues at US West Coast ports impact US PET market

13-Feb-15

Labor issues at US West Coast ports have led to complications for polyethylene terephthalate (PET) importers and have created opportunities for domestic PET producers just ahead of a seasonal increase in demand, as per market sources in Platts. Asian-origin PET mostly caters to US import demand, with those cargoes typically arriving on the US West Coast. After a recent stall in labor negotiations, a partial four-day shutdown of US West Coast ports started on Thursday. Loading and unloading at the 29 ports will not resume until Tuesday, according to the Pacific Maritime Association. PET demand typically increases before the summer with more product being turned into plastic water and soda bottles. PET bottling season generally begins around April, but a producer said last week that PET demand may come sooner than that due to the backlog of containers at West Coast ports. A domestic producer said earlier this week that he has seen stronger demand lately. He attributed part of that to expectations that PET prices were near a floor, but he added that the backlogs on the West Coast have contributed to the increased demand. The West Coast ports have a backlog of six to eight weeks, according to news reports. More than 70% of Asian imports of all goods come to the 29 West Coast ports impacted.