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

Buyer plans to sell former Hoover molding, assembly plants

July 31, 2014 2:06 pm ET

A former Hoover manufacturing plant with 150 injection machines in El Paso, Texas, and a nearby maquiladora plant in Juarez, Mexico, changed owners...    More

PE suppliers go after oxo-biodegradable technology in Mexico

July 31, 2014 1:12 pm ET

Mexican industry defends itself, calling claims 'misleading'    More

Image

Coal-to-olefins may not be an immediate threat

July 31, 2014 10:56 am ET

China's coal-derived plastics are unlikely to form any substantial impact in the resin market in the near term, as new capacity projects are running...    More

Image

There is no such thing as 'summer break' when you're in the plastics news business

July 31, 2014 10:51 am ET

There's a rhythm in most businesses. The ups and downs of the business cycle paint the big picture. In between, there's the annual schedule that...    More

Image

Finding the true value of mentoring

July 31, 2014 10:45 am ET

There's a common thread when I speak with thought leaders in the plastics industry. Most of them attribute a big part of their success to having a gre...    More

Market Reports

Pipe, Profile & Tubing Extrusion in North America 2014

U.S. demand for extruded plastics is expected to grow by 3 percent in 2014, with PVC remaining the largest segment.

Plastic pipe will post the strongest gains through 2018, continuing to take market share from competing materials in a range of markets.

Our latest market report provides in-depth analysis of current trends and their financial impact on the pipe, profile and tubing extrusion industry in North America.

Learn more

2014 Injection Molding Industry Report

GROWTH, OPPORTUNITY IN SIGHT FOR INJECTION MOLDERS IN 2014

In the wake of the economic turbulence earlier in this decade, molders today find themselves in much better shape. Molders are gaining a competitive advantage by investing in people, equipment and seeking inroads into new markets on a global scale.

Growth in the injection molding industry is going to be driven by low financing costs and a continued move to reshore some business.

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

Upcoming Plastics News Events

September 10, 2014 - September 12, 2014Plastics Caps & Closures 2014

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

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

More Events