July contract prices for US polyethylene terephthalate are likely to fall, a producer sources said Wednesday, predicting that lower feedstock prices could lead to a 1 cent/lb drop from June levels.
US PET June contracts were assessed at 82-83 cents/lb US railcar ($1,808-1,830/mt), unchanged from May, according to market sources.
Industry participants have been waiting for settlement of the US paraxylene contract -- the key variable in the formula-driven price for PET feedstock terephthalic acid -- before setting the PET contract. US July PX contracts were heard settled Tuesday at 71 cents/lb, down 1 cent from June. That would result in roughly a 0.66-cent reduction in the US PTA price.
US producers have also seen lower prices for PET feedstock monoethylene glycol this month. MEGlobal set its July North American Benchmark Price for MEG at 55 cents/lb, down 6 cents/lb from its June price. Asian contract prices, which also factor into some US PET contracts have dropped between $50-$100 in July.
It takes 0.87 pounds of PTA and 0.34 pounds of MEG to make a pound of PET.
