Houston (Platts)--20Feb2013/452 pm EST/2152 GMT

Indorama Ventures USA and Alphapet intend to raise polyethylene terephthalate resin prices for March by 2 cents/lb, according to a pair of letters obtained Wednesday by Platts.

Indorama's letter said increases are also applicable to supplies from its Starpet and Auriga Polymers subsidiaries.

Higher raw materials costs were cited as the reason for the increases. DAK Americas and Nan Ya Plastics also said higher feedstock prices were behind their 2 cents/lb March increases, which were announced earlier this week.

The February formula-driven contract for feedstock PTA was heard set at 69.23 cents/lb ($1,526/mt), up 2.01 cents/lb from January, following the settlement of the US paraxylene contract and tight supplies in the monoethylene glycol market due to ongoing supply-side turnarounds and production issues that have pushed prices higher, sources said. MEG contracts are expected to rise slightly in March, with MEGlobal announcing a 1 cent/lb March increase last week, according to a company source.

February PET contracts were unsettled Wednesday, though sources said they could be completed by the end of the week. Industry sources have said February contracts could likely settle 3-3.5 cents higher than January because of higher feedstock costs after producers entered the month seeking 4 cents/lb increases.

January domestic contracts were assessed by Platts at 84.75-85.75 cents/lb US railcar ($1,868-1,890/mt), which was a 3- to 3.5-cent increase over January.

--Chris Ferrell, christopher_ferrell@platts.com --Edited by Jason Lindquist, jason_lindquist@platts.com