Asia PET bottle chip prices nearing historic high on rising feedstock prices; suppliers increase offers by US$50/tonne from early last week but face softening market
September 14, 2011
– Asian polyethylene terephthalate bottle chip prices are nearing a record high as suppliers, driven by rising feedstock costs, raise offers by US$50 per tonne from early last week to US$1,750-$1,760/tonne free on board Asia, ICIS reported Sept. 14, citing industry sources.
Suppliers told ICIS that over the last six months, feedstock price increases have outpaced prices for PET bottle chip because the peak summer season for the PET beverage packaging end-market has passed. Before the summer peak, PET producers were able to raise prices in line with feedstock price increases, ICIS reported.
Chinese PET makers such as Jiangsu Sanfangxiang and China Resources Packaging Materials Co., Ltd. raised offers from last week’s $1,700-$1,710/tonne FOB China to $1,760/tonne FOB China by Sept. 13, ICIS reported. The levels were near the record high of $1,860–1,880/tonne FOB China seen in March this year on the back of rising raw material prices, producers told ICIS.
The steady price increases for PET feedstocks paraxylene, purified terephthalic acid and monoethylene glycol from July through September drove PET producers in Asia to hike prices despite slumping demand.
Feedstock PTA rose to $1,340-$1,365/tonne cost and freight China Main Port at the close of trading Sept. 13, up 4.4% from the week ended Sept. 2, on tight supply and higher PX prices, according to ICIS data. Chinese MEG prices increased to $1,335-$1,340/tonne CFR CMP Sept. 13, up 4.5% over the same period.
Rising feedstock costs amid the softer market has prompted some producers, including Taiwan-based Far Eastern Group and South Korea’s TK Chemical Corp., to consider suspending offers until the market settles down.
The primary source of this article is ICIS news, Surrey, England, Sept. 13, 2011.