06 May 2011 01:21 [Source: ICIS news]
HOUSTON (ICIS)--US polyethylene terephthalate (PET) bottle grade prices were assessed by ICIS at 100.50–104.00 cents/lb ($2,215–2,293/tonne, €1,484–1,536/tonne) DEL (delivered) on Thursday, based on upstream product cost increases.
This represents an increase of 1.00–2.50 cents/lb for the month of April.
Producers said that prices had increased by 2.00–2.50 cents/lb, while most buyers said they had agreed to hikes of 1.00–2.00 cents/lb.
One buyer previously said it had accepted an increase of 3 cents/lb for April, but this did not appear to be representative of the overall market.
A producer who initially said it would secure hikes of 3 cents/lb eventually revised this down to 2.50 cents/lb.
Suppliers had originally proposed April price increases of up to 5 cents/lb, but falling Asian prices and a near-rollover in the upstream US paraxylene (PX) market prompted sellers to moderate their expectations.
In production news, Indorama has declared FM on PET production at its 432,000 tonne/year plant in Decatur, Alabama, a company source said on 4 May.
The main power supply to the plant was cut off on 28 April following major storms in the region, but no damage to the PET facility itself was reported.
Customers served by the Decatur plant are currently on 35% product allocation, although the Indorama source did not provide details regarding how long stocks will last.
The company had initially been told that power would be restored this week, but the latest indications are that power may not be restored until 6–9 May.
The April contract price for purified terephthalic acid (PTA) was assessed by ICIS on 28 April at an increase of 0.82–1.02 cents/lb from March, bringing the April contract price to 71.50–71.80 cents/lb DEL.
PTA is the principal feedstock for PET, and the monthly contract price is formula-linked to upstream PX.
US PX April contracts were concluded at 85.50 cents/lb DEL, representing the high end of the March split settlement.
US PET producers include DAK Americas, Indorama, M&G Group and NanYa.
($1 = €0.67)
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