Sellers target February price hikes for US PET

15 January 2009 22:10  [Source: ICIS news]

HOUSTON (ICIS news)--At least three of the six major US polyethylene terephthalate (PET) producers will likely pursue a 4 cent/lb ($88/tonne, €67/tonne) price hike effective on 1 February due to anticipated gains in raw materials, buyers and sellers said on Thursday.

The price increase nomination for bottle-grade PET was confirmed by Nan Ya Plastics, and heard to be in effect for DAK Americas and Invista as well.

Despite a lack of demand, producers said forecasting models predicted higher costs for February, which combined with tight margins to necessitate a price hike.

A buyer said 4 cents/lb was also the increase expected for raw material paraxylene (PX), indicating the PET hike nomination had a built-in margin improvement of 0.5-1.5 cents/lb.

Other US PET producers, including Eastman, Mossi & Ghisolfi and Wellman, had not announced hikes.

US PET values, which were$1,332-1,420/tonne in December, have been on a slide since peaking in August at more than $2,100/tonne DEL (delivered). January contracts had not yet fully settled as buyers called for slight decreases and sellers predicted flat-to-slightly higher prices.

Sources agreed firmer pricing was pending in the US ever since values in Asia bottomed out and began rising in December.

($1 = €0.76)

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By: Landon Feller
+1 713 525 2653

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