Indorama Ventures USA plans to raise polyethylene terephthalate resin contract prices by 3 cents a pound in August, joining a pair of US producers also planning to implement feedstock-related increases, a company source said.
The increase also applies to resin from its Alphapet, Starpet and Auriga Polymers subsidiaries, according to letters sent to customers late Monday.
DAK Americas and Nan Ya Plastics Corporation also announced 3-cent/lb increases, effective August 1.
"This announcement is necessary due to the increase in raw material costs," Indorama's letter states. "We will, however, continue to monitor the situation and advise you of any changes."
July US PET contracts remained unsettled Tuesday, with industry sources pointing to a possible decrease of about 1 cent/lb. June US PET was assessed at 82-83 cents/lb US railcar ($1,808-1,830/mt), unchanged from May.
Prices for the feedstock monoethylene glycol appear set to move higher in August. MEGlobal will raise its August North American benchmark contract price for MEG to 57 cents/lb, a 2-cent increase from July, a company source said last week. The North American increase is in line with the company's change to its Asian contract price, which will rise $40/mt to $1,140/mt CFR in August. Shell nominated its August ACP at $1,115/mt CFR, up $25 from July, according to sources.
Industry sources were still waiting on a finalized July formula-derived PTA price. Initial settlements of the US paraxylene contract were heard 1-cent lower last week, at 71 cents/lb ($1,565/mt). The US PX contract is the key variable in the formula used to determine the PTA price.
Spot PX prices have risen $45/mt in the past two weeks, according to Platts data, and were assessed Monday at $1,440/mt.
It takes 0.87 pounds of PTA and 0.34 pounds of MEG to make a pound of PET.
