21 October 2010 20:55 [Source: ICIS news]
October contract prices moved up by 2 cents/lb, sources said, although one supplier was pushing for an additional 1 cent/lb hike.
The 2 cent/lb October increase would bring bottle grade PET prices to 72.96-75.96 cents/lb, as assessed by ICIS.
PET producers nominated November increases of 9 cents/lb, but an initial polling of market participants showed that an increase of less than 9 cents was considered likely.
The November nominations were driven by higher monoethylene glycol (MEG) and paraxylene (PX) costs, a producer said.
A buyer said producers allowed some cushion in their November price hike announcements to protect against further volatility in raw material costs.
The source added that October demand was unexpectedly strong, and operating rates were in healthy ranges for this time of year.
It was not clear why October demand was strong, the source said.
For buyers seeking to take on extra inventory with November price hikes looming, sources said there was some spot availability of carbonated soft drink (CSD) grades, but resin with tighter specifications was held off the market by brokers.
Two suppliers were also applying surcharges of 2-4 cents/lb to additional orders placed in the second half of October.
US PET producers include Dak, Eastman, Indorama, Invista, Mossi & Ghisolfi, Nanya and Wellman.
($1 = €0.72)
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