06 September 2013 09:54 [Source: ICB]
August pricing for US polyethylene terephthalate (PET) is seeing mixed settlements as negotiations between buyers and sellers are expected to run through to the very end of the month, market sources said on 29 August.
Some market participants said they received price increases in the 1.5-2.0 cents/lb ($33-44/tonne, €25-33/tonne) range, while others said their prices were up by 2.5-3.0 cents/lb for August.
The July US PET price range was at 82.50-87.50 cents/lb stretch-blow moulding (SBM) delivered (DEL), as assessed by ICIS. August prices would be in the approximate range of 84.50-90.00 cents/lb SBM DEL, with a median assessment of a 2.0-2.5 cents/lb rise.
There were no confirmed deals heard in that week, however,
Another participant said he has not yet settled his August pricing in the week, but it looks like he will see a price hike in the neighbourhood of 2 cents/lb.
Producers had targeted 3 cent/lb increases for August on the expectation that feedstock costs would rise in the month, while buyers were aiming for price increases at the level of 1.5-1.75 cents/lb.
Last week, market participants said that the trend line for August had shifted upward from 1.5-1.75 cents/lb to 2 cents/lb.
DEMAND TO RISE
Demand for PET is expected to go up slightly in the fall until the typical slowdown period in November to December, market sources said. The late August settlement echoes a similar pattern in March, when negotiations also came down to the wire and market participants didn't settle their monthly pricing until the very end of the month.
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