As negotiations for January polyethylene terephthalate contracts continue, some US producers have already begun to turn their sights to February with multiple announcements of 4 cents/lb increases to customers.
Indorama Ventures USA and its Alphapet subsidiary separately said their PET resin prices will go up by 4 cents/lb in February, according to letters sent Monday to customers and obtained by Platts Tuesday. The Indorama letter said the increase was also applicable to its Starpet and Auriga Polymers operations.
Last week, both DAK Americas and M&G Group announced 4 cents/lb increase for February, according to industry sources.
In each case, producers have pointed to rising feedstock costs as the reason for the increase. Raw material costs were also the key factor in the announcements of 5 cents/lb increases for January PET contracts.
While PET demand has been seasonably low, sources have said a 3-3.5 cents/lb settlement for January is likely given current margins. January contracts remained unsettled by time of publication, but sources have said they could be finalized by the end of the week.
US producers of feedstock monoethylene glycol have nominated 3-4 cents increases for February, according to industry sources. January contracts for terephthalic acid settled this week at 67.22 cents/lb ($1,482/mt), up 2.83 cents/lb following Thursday's 4 cents/lb increase to the US paraxylene contract settlement, sources said.
December PET contracts were settled last month at 81.5-82.5 cents/lb US railcar ($1,796-1,818/mt), a rollover from the previous month.
