US PET Prices Strengthen Further Owing to Stable Demand and Sluggish Production Rates
Polyethylene Terephthalate prices have been closing in on USD 2000 per MT on FOB basis, the recent price increase of USD 90 per MT meant prices are in touching distance at USD 1980 per MT FOB US Gulf Coast. PET prices have gained more than USD 250 per MT in the last quarter. Polyethylene Terephthalate prices in USA have been on an incessant uptrend since October due to consistent demand from downstream users as PET forms a staple for beverage bottles. PET demand has been on the rise since the advent of last summer. Earlier due to ample inventory levels PET prices remained stable in Q2 and Q3, however inventory levels have deteriorated drastically in Q4 and consequently prices have observed such record values. Feedstock Purified Terephthalic Acid (PTA) availability has dropped substantially in last few months which culminated into curtailed production of downstream PET. For PTA, US largely depends on exports from Mexico however, production lags in Mexico hampered supply of PTA in...