Home > Chemical News

Chemical News

US spot PET reaches 2015 high on higher demand, rising feedstock prices

https://www.chemnet.com   Apr 23,2015 Platts
US spot polyethylene terephthalate climbed to a 2015 high on Wednesday, assessed at $1,367/mt DDP US West Coast on rising demand and higher feedstock prices, sources said.

It's the highest assessment since December 10, when US spot PET was pegged at the same level.

"The push is coming from both feedstocks and demand," a US trader said.

PET has entered the peak demand season, sources have said, with the summer months typically bring greater usage of PET in the form of plastic bottled used for water and soda.

In addition to the demand season, feedstock pricing has strengthened over the last month. Asian feedstock pricing, which carries influence over US markets, has seen increases on a stronger energy complex and production issues.

Higher demand and feedstock costs have led US producers to announce price increases, market sources said.

US producers DAK Americas and Nan Ya this week announced May PET prices increases of 3 cents/lb, according to letters sent to customers. The letters cited higher raw material costs as the primary reason for the increases.

Since April price announcements came out in late March, US spot monoethylene glycol has risen 2.75 cents to 36.75 cents/lb FOB USG.

US spot paraxylene, the feedstock for purified terephthalic acid, has risen $120 to $880/mt FOB USG in that period. US PTA prices for May have not been set as market players are waiting for the May US PX contract price settlement.

"Aromatics prices and glycol prices are both pushing on the PET producers," an upstream trader said.

Production of 1 lb of PET requires 0.87 lb of PTA and 0.34 lb of MEG.

Feedstock pricing in Asia has also seen increases since the April price announcements in the US. Asian PX has risen $113.50 to $954.50/mt CFR China/Taiwan on stronger crude and upstream and downstream concerns. The Asian MEG price has climbed $189 to $1,010/mt CFR China over the period, and Asian PTA has increased $103 to $728/mt CFR China.
 Print  |    add to Favorites  |    Close