DAK Americas has issued a 3 cents/lb ($66/mt) increase for US polyethylene terephthalate prices effective from January 1, the company said Friday.

In a statement, DAK cited, "renewed upward pressure on the price of raw materials, and the need to partially recover deteriorated PET margins," as reasons for the increase.

Raw material paraxylene spot prices have trended higher in the benchmark Asian markets, which US participants believed would be followed by higher prices in North America.

January's Asia Contract Price nominations ranged from $1,510 to $1,550/mt, significantly higher than December's $1,390/mt ACP. With the current spot market at $1,462/mt China, it looked like the ACP would increase in December, sources said.

The other main feedstock contract for PET, monoethylene glycol was set to drop about 2-2.5 cents/lb, which would be about a 0.77 cents/lb decrease in costs per pound of PET.

"Even with lower MEG, if PX goes up 4-5 cents/lb we would face a loss of margin without a PET increase," another PET producer said earlier in the week as he was considering how much to nominate for a price hike.

US PET contracts were talked at 82-83 cents/lb ($1,808-1,830/mt) delivered for December in a seasonally weak demand market.