08 September 2010 02:53 [Source: ICIS news]
HOUSTON (ICIS)--Latin America polyethylene terephthalate (PET) prices for September shipments firmed by 2.5 cents/lb ($55/tonne, €43/tonne) on snug supply and higher offers from Asia, sources said late on Tuesday.
Although PET prices in Latin America were generally driven by resin prices from Asia, shorter regional supply and rising demand on warmer weather in South America also supported the increases, sources added.
Additionally, PET producers in the US had earlier nominated 3 cent/lb increases for September. Participants said higher prices would probably be implemented in the US this month, as feedstock costs were increasing.
The benchmark Asia Contract Price (ACP) for feedstock paraxylene (PX) settled $60/tonne higher from August levels at $950/tonne, supporting the initiatives in the US.
Market sources anticipated that demand for soft drink and PET bottles in the US would start to decline in September, but said that off-take has been unusually strong until the end of August because of the hot weather.
In Brazil, market participants said PET prices this month were already higher by as much as $50/tonne.
The high season for bottled drinks was starting in Brazil, while resin and preform inventories were snug, sources said.
PET domestic prices in Brazil before the increases were at $1,764–1,804/tonne DEL (delivered), as assessed by ICIS.
($1 = €0.78)
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