Neogroup delays PET line restart until month-end at Klaipeda, Lithuania

14-Nov-14

Lithuania's Neogroup has delayed the restart of a 160,000 m tpa polyethylene terephthalate line at its 310,000 m tpa Klaipeda plant until the end of November, a company source told Platts. The unit began a scheduled stoppage in early October. Sources said previously the unit was due to restart in the first half of November. The delay comes at a time when plants totaling another 698,000 m tpa of capacity have either come back online or are due to come back online, potentially boosting European supplies of PET within four weeks. Indorama's 418,000-mt Rotterdam plant is due to restart this week, a company source confirmed. Equipolymers' 150,000 tpa Schkopau, Germany, plant is due to restart later this month. Novapet's 130,000 mtpa Barbastro plant in Spain was scheduled to restart at the end of October. The restart of the plants, coupled with lower feedstock costs, has seen buyers demand lower prices from sellers in monthly contract negotiations. Some buyers are demanding reductions of as much as Eur80/mt. Although buyers are holding back on purchases in anticipation of lower spot PET prices, producers are adamant that, in the absence of full November paraxylene and monoethylene glycol contract price settlements and the PET shutdowns still in place, they will not be lowering prices to the Eur1,000/mt level some buyers are anticipating.