DAK Americas and Nan Ya Plastics intend to raise polyethylene terephthalate prices for March by 2 cents/lb, according to a pair of letters obtained Tuesday by Platts.
Both companies cited higher raw materials costs as the reason for the increase. DAK Americas sent letters to customers Monday. Nan Ya notified customers Tuesday.
The February formula-driven contract for feedstock PTA was heard set at 69.23 cents/lb ($1,526/mt), up 2.01 cents/lb from January, following the settlement of the US paraxylene contract and tight supplies in the monoethylene glycol market due to ongoing supply-side turnarounds and production issues that have pushed prices higher, sources said. MEG contracts are expected to rise slightly in March, with MEGlobal announcing a 1 cent/lb March increase last week, according to a company source.
February PET contracts were unsettled. Industry sources have said February contracts could likely settle 3-3.5 cents higher than January because of higher feedstock costs after producers entered the month seeking 4 cents/lb increases.
January domestic contracts were assessed by Platts at 84.75-85.75 cents/lb US railcar ($1,868-1,890/mt), which was a 3- to 3.5-cent increase over January.
