Dak Americas to acquire the PET business

(BNAmericas) -- Dak Americas, a subsidiary of Mexican conglomerate Alfa (BMV: ALFA), has agreed to acquire the PET business of US plastic packaging company Wellman in a deal worth approximately USD 185mn in cash and the assumption of certain liabilities, Alfa said in a filing with the Mexico City bourse.

The acquisition involves a 430 KTa PET plant in Bay St Louis, Mississippi, which employs 165 people, and is expected to close during the second quarter this year, subject to regulatory approval.

"With this transaction, our subsidiary Dak Americas will increase efficiency, gain flexibility and expand its product range to better serve the needs of its customers," said Alfa general director Alvaro Fernandez Garza.

MRC

(Reuters) - Crude oil prices fell by more than USD 1 on Monday, extending last week's losses, with risk aversion rising after euro zone finance ministers postponed a final decision on emergency loans to Greece. By 1200 GMT, Brent crude fell by USD 1.50 a barrel to USD 111.71 a barrel, while U.S. oil lost USD 1.30 a barrel to USD 91.71 a barrel.

"The crisis in Greece has resulted in higher risk aversion, which is weighing on oil prices," Commerzbank analysts led by Eugen Weinberg said in a note.

Euro zone finance ministers postponed a final decision on extending 12 billion euros (USD 17 billion) in emergency loans to Greece, pending approval of the introduction of harsh austerity measures by Athens, which pushed the common currency lower.

MRC

(ICIS) -- US polypropylene (PP) June contract prices fell by 14%, pressured by a 15 cent/lb (USD 331/tonne, EUR 235/tonne) drop in feedstock costs, market sources said on Friday.

US PP contract prices for June were assessed at 93-95 cents/lb DEL (delivered), down 15 cents/lb from May, reflecting the pass-through of lower propylene prices.

The June contract price was down from 108-110 cents/lb DEL in May, according to ICIS.

Most of the US PP market has a monomer-based contract that follows the monthly polymer grade propylene (PGP) cost. With the 15 cent/lb drop in propylene, US PGP settled at 82 cents/lb for June, pressured by loosening supply and lower spot prices in recent weeks.

Some buyers who do not use the monomer-plus pricing tried to seek greater discounts, based on market weakness, but those efforts were not successful, market sources said.

MRC

(ICIS) -- Spot purified terephthalic acid (PTA) prices in Asia may fall further after falling to a six-month low last week, on soft downstream demand and huge capacity additions in China over the next three months, industry sources said on Monday.

PTA spot prices shed USD 12-17/tonne (EUR 8-12/tonne) week on week to USD 1178-1.193/tonne CFR (cost & freight) CMP (China Main Port) on 17 June, after hovering at around USD 1.190-1.220/tonne CFR CMP for more than a month, according to ICIS.

Most market players are pessimistic about the PTA market in the third quarter with a total 2.7m tonnes/year coming on stream in China through August, amid a slowing down of demand from the downstream textile industry.

MRC

(ICIS) -- Prices of polystyrene (PS) in the Middle East have declined during the region's peak demand season from late April to June this year, market sources said on Monday.

A trader in Jordan said the political unrest in Syria has dampened business dealings in the region, causing the poor performance of downstream businesses.

Another east Mediterranean-based trader said the polymers market has weakened, which is causing the market to become bearish. Buyers are withholding their bids, forcing PS producers and/or sellers to reduce their offers.

Cargoes of general purpose PS (GPPS) for loading in June were heard to be traded at USD 1.590-1.630/tonne (EUR 1.113-1.141/tonne) CFR (cost & freight) east Mediterranean (MED)/Gulf Cooperation Council (GCC) on 17 June, while those in the Iranian market were assessed at USD 1.550-1.600/tonne CFR Iran 17 June because of lower buying and selling indications, according to ICIS.

Small parcels of high impact PS (HIPS) for delivery in June were heard to be traded at USD 1.800-1.850/tonne CFR east MED/GCC. The prices of HIPS in Iran were assessed at USD 1.740-1.800/tonne CFR Iran on 17 June because of lower buying and selling indications.

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