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M&G declares hike in PET price to regain lost margins
28 May '08
2 min read
M&G Polymers, a North American based PET producer has announced a 3 cent per pound hike in its product prices for June. This will be in addition to the 4 cent per pound increase that has been implemented for May.
Company sources informed Fibre2fashion, “One of the primary reasons for announcement of this June increase is to gain back margins that have been lost in the past. An industry made up of major PET producers that post losses quarter over quarter, and in one case even bankruptcy, will not be in a condition to support the market demands of the future. Other cost issues and pressures are also a major consideration. A fair value for PET is therefore a valid reason for the decision to increase prices in June.”
The market however, is waiting for price settlement of paraxylene and if the May and June increases are successful, PET contracts would hover somewhere around 83 cents per pound depending on the size of the buyer.
The M&G plant in Altamira, Mexico, was in the middle of a turnaround of its 1,000 mt/day PET when the unit had to be taken down for maintenance in the beginning of May. It is expected to get back into production by mid June. The present production capacity however, stands between 1.4 – 1.5 million tons per year.
Company sources informed Fibre2fashion, “One of the primary reasons for announcement of this June increase is to gain back margins that have been lost in the past. An industry made up of major PET producers that post losses quarter over quarter, and in one case even bankruptcy, will not be in a condition to support the market demands of the future. Other cost issues and pressures are also a major consideration. A fair value for PET is therefore a valid reason for the decision to increase prices in June.”
The market however, is waiting for price settlement of paraxylene and if the May and June increases are successful, PET contracts would hover somewhere around 83 cents per pound depending on the size of the buyer.
The M&G plant in Altamira, Mexico, was in the middle of a turnaround of its 1,000 mt/day PET when the unit had to be taken down for maintenance in the beginning of May. It is expected to get back into production by mid June. The present production capacity however, stands between 1.4 – 1.5 million tons per year.
Fibre2fashion News Desk - India
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