US polyethylene terephthalate producer DAK Americas plans to increase July prices by 5 cents/lb, revising its previous announcement of a 3 cents/lb increase for the month, the company said Thursday.
"The revision is needed to address the volatility of the PET raw material market and the unexpected increase in PET value chain," according to a letter to customers.
Upstream US paraxylene prices were assessed Thursday at $1,335/mt FOB USG and have risen $175/mt since the beginning of June, tracking upward movement in the Asian market. The US PX contract price is the key variable used to set the formula-derived price for purified terephthalic acid (PTA).
US monoethylene glycol prices are set to increase in July as US producers have been heard increasing July prices 2-4 cents/lb, market sources said.
It takes 0.87 lb of PTA and 0.34 lb of MEG to make a pound of PET.
Other US producers, including Nan Ya and Indorama, have also announced 3 cents/lb increases for July. Nan Ya's letter said the July increase was in addition to the industrywide 2 cents/lb increase being sought for June.
June US PET contracts remained unsettled Thursday as market sources were still awaiting settlement of the June US PX contract.
Domestic PET contracts were last assessed by Platts for May at $1,780-$1,802/mt.
