Feedstock volatility drives 9 cent/lb Feb PET price initiative in Mexico

25 January 2011 23:17  [Source: ICIS news]

HOUSTON (ICIS)--A polyethylene terephthalate (PET) producer in Mexico proposed a 9 cent/lb ($198/tonne, €145/tonne) price increase for February, driven by persistent feedstock pressure within the region and from Asia, local sources said on Tuesday.

PET prices in Mexico were assessed by ICIS up $60/tonne in early January, raising the range for Mexico PET to $1,740-1,800/tonne DEL (delivered). An additional 2 cent/lb hike was proposed for mid-month. 

The 2 cent/lb boost was applied to the few processors who decided to buy resin in the second half of January, but several held off on purchases, participants said.

Therefore, the February price increase would be 7 cents/lb for processors who bought resin at that time, according to a resin supplier. Those who did not buy in late January would pay the full 9 cents/lb in February.

Global pressure from high-priced feedstocks drove the initiatives in Mexico.

US paraxylene (PX) January contracts settled at 70 cents/lb DEL (delivered), up by 7 cents/lb from December amid tight US supply and climbing Asia PX prices. February nominations were not confirmed, but one initiative was discussed as high as plus 11 cents/lb, a source said.

In Asia, JX Nippon Oil and Energy proposed a February PX Asian Contract Price (ACP) of $1,670/tonne CFR (cost and freight) Asia, $290/tonne higher from $1,380/tonne in January. S-Oil proposed a February ACP of $1,680/tonne CFR Asia.

The December ACP was $1,275/tonne CFR Asia.

Asian spot PX prices also continued on a firm uptrend, and were assessed at $1,620-1,630/tonne CFR Taiwan/China Main Port (CMP) on 21 January, up from $1,585-1,595/tonne CFR Taiwan/CMP on 14 January.

PET producers in Mexico are Mossi & Ghisolfi (M&G), DAK and Invista.

($1 = €0.73)

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By: Ron Coifman
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