Tight feedstock pushes PET prices up 2 cents

By Frank Esposito
Senior Staff Reporter

Published: February 21, 2013 2:22 pm ET
Updated: February 21, 2013 3:27 pm ET

Related to this story

Topics Suppliers, Materials Suppliers

AKRON, OHIO — Increasing feedstock costs and tight feedstock supplies have resulted in a net increase of 2 cents per pound for North American PET resin since Dec. 1.

The net increase was factored in at most accounts during December and January, sources said. An additional increase of 4 cents per pound was being attempted by North American PET makers during February. The results of that attempt are still being determined, but market watchers expected at least half of it to be successful.

Regional PET prices increased almost 10 percent during 2012, according to the Plastics News resin pricing chart.

The 2-cent December-January move — along with a total of 9 cents in increases that hit the market between September and November — surprised some buyers since they came during the fall and winter months when sales into the beverage-heavy PET market typically slow down.

Lower demand often makes it more difficult for material suppliers to raise prices. But in recent months, challenges in PET feedstock supply have trumped lower demand, sending prices up.

The recent rounds of increases also come at a time when regional PET demand is expected to grow at low single digit rates at best for the next several years. In spite of that low growth rate — and in spite of a recent estimate that the regional PET market already is oversupplied by about 2 billion pounds – M&G Group has announced plans to build a massive plant with 2.2 billion pounds of annual PET capacity in Corpus Christi, Texas.

That plant would be operational in 2015 or 2016. Some of that new capacity could be earmarked for export markets, although industry estimates are that the global PET market currently is oversupplied by almost 20 billion pounds.


Comments

Tight feedstock pushes PET prices up 2 cents

By Frank Esposito
Senior Staff Reporter

Published: February 21, 2013 2:22 pm ET
Updated: February 21, 2013 3:27 pm ET

Post Your Comments


Back to story


More stories

Image

Kydex, Allen Extruders joined under Sekisui SPI name

September 17, 2014 4:12 pm ET

Sekisui Chemical Co. Ltd. is combining plastic sheet makers Kydex LLC and Allen Extruders LLC under one roof as Sekisui SPI.    More

Image

Minnesota receives grant to help develop new bioplastics

September 17, 2014 4:08 pm ET

The University of Minnesota has received a $20 million grant to fund the development of new types of bioplastics.    More

Badger buys competitor Joseph Homa

September 17, 2014 4:04 pm ET

Badger Plug Co. has extended its protective plugs customer base by acquiring and closing a rival, Joseph Homa Consultants Inc. of Montreal.    More

Image

China's Polymax Elastomer launches U.S. production in Illinois

September 17, 2014 3:35 pm ET

Chinese materials maker Polymax Elastomer Technology Co. Ltd. has opened a North American production site and headquarters in Waukegan, Ill.    More

Image

Georg Fischer closing SC pipe plant

September 17, 2014 2:58 pm ET

Georg Fischer Central Plastics LLC (GFCP) closed its manufacturing operation for pipe components in Abbeville, S.C., on Sept. 15, putting 17 employees...    More

Market Reports

Plastics Caps & Closures Market Report

The annual recap of top trends and future outlook for the plastics caps & closures market features interviews with industry thought leaders and Bill Wood’s economic forecast of trends in growing end markets. You will also gain insight on trends in caps design, materials, machinery, molds & tooling and reviews of mergers & acquisitions.

Learn more

Shale Gas Market - Analysis of North American Region

This report highlights the impact of shale-based natural gas on the North American plastics market and features an in-depth analysis of production trends in the United States during 2013 and a forecast for 2014 and beyond.

Learn more

Thermoformed Packaging 2014 Market Review & Outlook – North America

This in-depth report analyzes economic and market trends, legislative/regulatory activity impacting supply and demand, business opportunities and threats, materials pricing, manufacturing technology, as well as growth strategies being implemented by thermoformed packaging companies.

Learn more

Upcoming Plastics News Events

January 14, 2015 - January 14, 2015Plastics in Automotive

February 4, 2015 - February 6, 2015Plastics News Executive Forum 2015

More Events