AlliedSignal Inc. will raise the price of its Petra-brand line of post-consumer PET engineering resins Aug. 1. Citing the rise in the price of post-consumer feedstock, AlliedSignal said the Petra line will increase 15 cents per pound. The line includes glass- and mineral-reinforced and flame-retardant varieties, costing $1.75-$2.75 per pound for truckload quantities.
``We continue to see higher prices for feedstock,'' Martin Schena, AlliedSignal's Petra product manager, said in a telephone interview from his Morristown, N.J., office. ``We have buying contracts with suppliers, and we have seen them be hit by the price increases.''
Industry sources indicate that the prices for baled PET bottles have softened in recent weeks due to a series of factors, including a slump in the export rate and increased virgin resin production. That softening of baled bottle prices, however, has not resulted yet in a significant decrease in the cost of post-consumer PET flake and pellets.
Schena admitted that the cost of feedstock bottles has softened somewhat on world markets recently, and that the announced AlliedSignal increase is somewhat larger than some other producers'. He noted that how long the price softening will continue, however, is unclear, and that the AlliedSignal products are value-added.
``The increases in feedstock prices are not as dramatic as they were last year,'' Schena said. ``But we are still seeing increases. There was significant pressure on the post-consumer feedstock markets from Far Eastern buyers paying cash for material to be used in the fiber and textile industry. We don't see so much of that now, but we still are seeing increases, and limited availability.''
Other producers of recycled-content PET also have been affected by the price increases for feedstock, but have dealt with them in a different way.
One source at a major U.S. resin maker that has a line of post-consumer and virgin blend resins, said the relatively large price increase on the AlliedSignal products might be because of their high recycled content, and their value-added attributes.
``Basically, we have swallowed the cost of feedstock increases, and raised our prices only about 4 cents per pound,'' said the source, who asked not to be named.
The Petra line is produced at Allied's Chesterfield, Va., facility. Major uses include furniture, auto parts, lawn and garden products and power tools.