Polyethylene terephthalate producer Indorama Ventures USA will hike prices on all grades of PET resins in the US effective June 1, the company said in a letter to customers obtained by S&P Global Platts Wednesday. The increase is applicable to supplies from Indorama subsidiaries, Alphapet, Starpet and Auriga Polymers, the letter said.
Indorama cited the “continued increase in various costs for the production and supply of PET resin, including the cost of key raw materials” as a driver behind the increase. No other price increases have been announced, though sources anticipated that other sellers would follow given current fundamentals.
Regarding production costs, sources pointed to a 3-cent gain in the May US paraxylene contract, which was heard settled at 51 cents/lb and its associated impact on PTA as a driver for the price increase. While no PTA settlement was heard, sources expected PTA contracts to rise in concert with PX. Additionally, PET production costs saw upward pressure from stronger MEG prices, which were last assesssed 46-47 cents/lb.
PET supply has contracted in the past year, largely due to disruptions associated with M&G polymers financial woes. As a result of those financial issues, the company was forced to shutter and sell off its 360,000 mt/year PET unit at Apple Grove, West Virginia.
The company also halted construction on its 1.1 million mt/year PET project at Corpus Christi. Sources said that the West Virginia plan was expected to come back online in in the third quarter, but this was not the only supply constraint. Sources said imports have been curbed following a decision by the US Department of Commerce to impose preliminary anti-dumping duties on several countries including South Korea, Pakistan, Brazil and Indonesia.
Conversely, sources characterized the seasonal demand for PET as strong with the onset of the summer bottling season in the US. Spot PET prices were last heard in the low to mid-80s cents/lb range on a DDP West Coast basis.
–Kevin Allen, kevin.allen@spglobal.com
–Edited by Derek Sands, derek.sands@spglobal.com
Related Topics
-Chengxing Group will launch a new PET plant in China on June 1 – Chengxing Group, a major Chinese producer of petrochemicals, is planning to put into operation a new PET production plant in Jianggyin, Jiangsu – Chengxing Group PET plant China
-Europe PET players mull over further price hikes in June on tightness – European polyethylene terephthalate (PET) players are considering June spot prices as sellers announce further increases due to high demand during a period of tightness – Europe PET price hikes June
-Prices of PET in the Gulf countries increased against the backdrop of limited supply – Manufacturers of polyethylene terephthalate (PET) in the countries of the Persian Gulf (GCC) increased their price proposals at the end of last week, as the supply of material in the region remains limited – Prices PET Gulf countries
-Nan Ya Plastics increases June prices of PET in the US – The Taiwanese company Nan Ya Plastics (part of the Formosa Group) announced an increase in June prices for all grades of polyethylene terephthalate (PET) for the US market by 5 cents per pound or USD110 per tonne – Nan Ya Plastics June prices PET USA
-Thai Indorama completes acquisition of Brazil PET plant – Thai Indorama acquisition Brazil PET plant
-Judge approves sale of bankrupt M&G plant – A bankrupt plastics plant that had been under construction in Corpus Christi now might be completed and put into operation – Judge bankrupt M&G plant
-Buyer emerges for bankrupt M&G plant, but sale still not final – Italian plastics giant M&G USA files for Chapter 11 bankruptcy protection. The company will now have to sell the $1 billion plant it is building in Corpus Christi – Buyer Mossi Ghisolfi M&G plant
-Alpek, Indorama, Far Eastern consortium to acquire M&G Texas PTA-PET plant for $1.12bn – Alpek Indorama Far Eastern consortium Mossi Ghisolfi Texas PTA PET
-The bankruptcy nightmare on Mossi & Ghisolfi will decide the court – A glimmer opened when Eni had shown interest in Biochemtex, but in the end of February the cold shower arrived at the Ministry of Economic Development – Bankruptcy Mossi Ghisolfi court
-Indorama to buy M&G’s Brazil PET plant – Indorama Ventures Public Co. Ltd. (IVL), has entered into an agreement to acquire M&G Polimeros Brazil SA in Ipojuca Brazil for an undisclosed amount – Indorama Mossi Ghisolfi Brazil PET plant
-Indorama wants to buy M&G West Virginia PET plant – Bangkok-based materials company Indorama Ventures Public Co. Ltd. is bidding to buy the West Virginia PET plant and Ohio research and development site of bankrupt M&G Polymers USA LLC. –Indorama Mossi Ghisolfi West Virginia PET plant
-Indorama Ventures is considering buying a M & G PET plant in the US – Indorama Ventures Mossi Ghisolfi PET US
-Mossi & Ghisolfi, the group admits the difficulties: “Delays in the US, even for Hurricane Harvey” – Mossi Ghisolfi group difficulties US Texas
-M&G Resins to shed 100 jobs in Corpus Christi by Thanksgiving – Mossi Ghisolfi Resins Corpus Christi
-Plastics plant is a $100 million headache for U.S., Texas companies – Plastics plant US Texas
-Financial woes endanger $1 billion plant – Mossi Ghisolfi dollars 1 billion plant
-PET resin maker M&G Group files for bankruptcy protection in Italy – PET resin maker Mossi Ghisolfi Group bankruptcy protection Italy
-Alpek cutting off M&G over unpaid bills – Alpek Mossi Ghisolfi
-Latest court filing brings more scrutiny to future of M&G plant in Corpus Christi – Mossi Ghisolfi Corpus Christi
-M&G to cease production at US PET plant in W Virginia – Mossi Ghisolfi US PET West Virginia
-PET resin maker M&G Group files for bankruptcy protection in Italy – PET resin maker Mossi Ghisolfi Group bankruptcy protection Italy
–Contractor releases workers from M&G US PET project – Mossi Ghisolfi M G US PET project
-Alpek cutting off M&G over unpaid bills – Alpek Mossi Ghisolfi
-Shares in Mexico’s Alpek drop amid payment issues with client – Mexico Alpek Mossi Ghisolfi
