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.
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.
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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