A nearly 30 cents/lb spread in the price of PET and HDPE blow molding could lead some PET converters to switch to HDPE, several sources said Friday.
"The spread is very wide now, we'll have to see if switching happens," a PET producer said.
PET prices were not settled for March but were likely to be around 92-93 cents/lb, and likely would go up again in April due to higher paraxylene prices. PET producers have issued 5 cents/lb price hikes for April on an expected climb in the PX contract.
HDPE blow molding prices for the largest volume converters were heard to be in the low 60's cents/lb delivered in February. Prices for March were not set with negotiations centering around a possible 2 cents/lb price increase.
Asked if he had seen any converters make the switch a distributor said, "Not yet, but I am sure some will do it."
