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

NPE already heading toward a record

January 27, 2015 12:28 pm ET

The Society of the Plastics Industry Inc. says that NPE 2015 in Orlando, Fla., will be the largest in NPE's history in terms of exhibition space.    More

Image

A. Schulman, Citadel continue buying blitz

January 27, 2015 11:32 am ET

A. Schulman Inc. and Citadel Plastics Inc. — two deal-happy materials firms — were at it again in the second half of 2014.    More

Image

It's becoming a seller's market for plastics firms

January 27, 2015 11:37 am ET

The pace of plastics mergers and acquisitions activity slowed a bit in the second half of 2014 — but market watchers have high expectations for ...    More

Image

Materials market sees more deals

January 27, 2015 11:26 am ET

Plastics materials deals showed modest growth in 2014, increasing 6 percent vs. their 2013 total.    More

Image

Kingspan adds more European production with Joris Ide acquisition

January 27, 2015 10:30 am ET

Kingspan Group plc has purchased insulated panels and building systems supplier Joris Ide Group for 315 million euros ($356 million).    More

Market Reports

Plastics in Automotive: Innovation & Emerging Trends

This special report newly released by PN and sponsored by The Conair Group examines current trends in the use of plastics in automotive, materials innovations and the changing landscape. It includes a review of legislative/regulatory activity impacting vehicle development and lightweighting, market opportunities & challenges for mold and toolmakers, innovative design strategies being implemented by major OEMs and suppliers, as well as a review of key indicators in Canada, Mexico, Brazil and China.

Learn more

Plastics Recycling Trends in North America

This report is a review and analysis of the North American Plastics Recycling Industry, including key trends and statistics based on 2013 performance. We examine market environment factors, regulatory issues, industry challenges, key drivers and emerging trends in post-consumer and post-industrial recycling.

Learn more

Injection Molding Market Analysis & Processor Rankings

Plastics News BUNDLED package contains our in-depth Market Analysis of the Injection Molding segment. You will gain keen insight on current trends and our economic outlook.

As a BONUS this includes PN's updated 2014 database of North American Injection Molders RANKED by sales volume. Sort, merge, mail & prospect by end market, materials processed, region, # of plants and more.

Learn more

Upcoming Plastics News Events

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

June 2, 2015 - June 3, 2015Plastics Financial Summit - Chicago 2015

September 16, 2015 - September 18, 2015Plastics Caps & Closures - September 2015

More Events