After margin increases in March, US PET makers seek more in Apr

06-Apr-11

US PET producers increased their margins by 1.5-2 cents/lb in March, as per Platts. Now they are scouting for increases in April. Costs from MEG and PTA rose roughly a total of 3.86 cents/lb, while PET contracts climbed 5.5-6 cents/lb. The absolute price of PET bottle resin was still a matter of discussion. One source said contracts were at 93-94 cents/lb, while another put non-raw material formula related contracts at 95-96 cents/lb. In April, producers have issued a 5 cents/lb price initiative. As fundamentals remained strong, participants believed there would be another margin increase but hesitated to say just how much as it would depend on how much feedstock costs increase. MEG contracts have rolled over from March to April except for buyers with contracts connected to an Asian monthly spot price. North American PX contracts have not been settled but given they increased in Asia by US$35/mt, participants anticipated the North American contract would increase by a similar amount.