US polyethylene terephthalate contracts settled 2.75-3 cents/lb higher for February, multiple sources said Friday.
February PET contracts were assessed at 87.75-88.75 cents/lb US railcar ($1,935-1,957/mt), a 3 cents/lb increase over January levels.
The increase was in line with market expectations. Producers initially sought 4 cents/lb increases at the start of February. Despite seasonably low demand, producers have said increases were necessary due to the rising cost of raw materials.
The February formula-driven contract for feedstock purified terephthalic acid was set at 69.23 cents/lb ($1,526/mt), up 2.01 cents/lb from January, due to a number of reasons.
Those reasons include a 3 cents/lb higher February settlement for 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.
February US MEG contracts were assessed at 55.25 cents/lb, up 2.05 cents from January.
MEG contracts are expected to rise slightly in March, with MEGlobal announcing a 1 cent/lb increase for its North American benchmark price.
And other US PET producers have announced price hikes for March. many of them for 2 cents/lb.
Indorama Ventures USA, DAK Americas, M&G Group and Nan Ya Plastics all sent letters to customers announcing 2 cents/lb March PET resin price rises.
In each case, producers pointed to rising feedstock costs as the reason for the increase.
