London (Platts)--23Jul2007

PET prices in the UK are unlikely to be driven up by consumers in
flood-ridden areas of the country making "panic" purchases of bottled water as
the market has been lengthening through the summer due to sluggish demand,
sources said Monday.

     One market source said: "We've been talking for weeks about sales of
bottled drinks being down because of the lack of sun. Ironically now we hear
that people are buying water because of the rain." But, the source added: "We
don't expect there to be a big impact on PET prices. The demand has been poor
all summer and so stock levels in general are high." UK PET spot prices
dropped around GBP20-30/mt ($40-$60/mt) in the first week of July in response
to a Eur98/mt ($135/mt) fall in the contract level for feedstock paraxylene
and were now pegged upwards of GBP770/mt FD.

     Over the weekend, police were called to supermarkets in Gloucester, in
the west of England, as customers battled over the last bottles of water on
the shelves after news emerged that drinking water supplies were threatened
following the floods.

     Damage from floodwater had already caused the closure of the Mythe Water
Treatment Works, Tewkesbury, and with many areas of Gloucestershire and
neighboring counties still under water, there remained anxiety about the
security of the water supply.