01 April 2012 17:00 [Source: ICIS news]
HOUSTON (ICIS)--US polyethylene terephthalate (PET) prices have been on an upward trend ahead of the American Fuel & Petrochemical Manufacturers (AFPM) conference, following increases in feedstock costs, which in turn have been influenced by price dynamics in Asia.
The US paraxylene (PX) price tracks the Asia PX Contract Price (ACP) and is the basis of the formula that determines the PET feedstock purified terephthalic acid (PTA) monthly contract price.
In February, domestic prices for PET were assessed at 84–89 cents/lb ($1,852-1,962/tonne) ?xml:namespace>
PET producers announced a targeted price increase of 3 cents/lb for March, on the assumption that the PX March contract would be concluded higher by 3 cents/lb.
However, buyers and traders said the PET increase in March would be by 2 cents/lb.
The US PX March contract settled up by 3 cents/lb at 82 cents/lb, following a higher March PX ACP and an increase in raw material costs. The increase also prompted a hike in the PTA March contract.
PET sources were anticipating higher prices in March following the high demand from the bottled drinks sector moving into the summer season. However, producers and traders said demand was moving up, but at a slower pace than in the previous year.
Despite a lag in demand, PET March domestic prices were assessed by ICIS at 86–91 cents/lb
Industry sources say prices in April will not increase, and may move lower by 1–2 cents/lb, following expectations of lower raw material costs in April.
“The PX market is still developing, and we are taking it one month at a time to determine price direction for PET in the following months”, a US PET producer said.
Hosted by the American Fuel & Petrochemical Manufacturers (AFPM), the IPC continues through Tuesday in San Antonio, Texas.
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