01 October 2010 20:50 [Source: ICIS news]
HOUSTON (ICIS)--US bottle-grade polyethylene terephthalate (PET) contract prices for September increased by 2.00 cents/lb ($44/tonne, €32/tonne) on Friday, following an upward trend in feedstock prices and healthy demand.
The 2.00-cent PET increase was below nominations made earlier in the month at 3.00 cents/lb, and came after feedstock September paraxyxlene (PX) contracts earlier settled up 1.50 cents/lb at 48.00 cents/lb delivered (DEL).
With the increase, US PET prices in September ranged from 70.96-73.96 cents/lb, as assessed by ICIS.
Part of the September increase also made up for a hike in feedstock PX prices in August that was not passed along to negotiated contracts for that month, a source said.
Looking ahead, PET producers have already nominated another 2 cent/lb increase for October, as demand remains strong.
PX pricing signals also pointed to an increase in US October contracts there, following a 3.40 cent/lb increase in the October Asian contract price (ACP).
However, PET buyers might hold off from building inventories coming out of the peak season with incoming price hikes, sources said.
October is typically the time that buyers replenish tanks after inventories are drained following the high-demand US summer season.
But buyers could wait until November or December to restock with higher prices on the near-term horizon, a source said.
US PET producers include Dak, Eastman, Indorama, Invista, Mossi & Ghisolfi (M&G), Nanya and Wellman.
Additional reporting by Ryan Hickman
($1 = €0.73)
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