14 September 2010 23:07 [Source: ICIS news]
HOUSTON (ICIS)--US polyethylene terephthalate (PET) offers into Latin America rose by $60/tonne for September and another $60/tonne hike initiative was likely for October, driven by higher feedstock costs and stronger demand, market participants said on Tuesday.
Offers from Asia were also said to have increased by 2.5 cents/lb ($55/tonne, €43/tonne) on the same rationale.
With rising PET domestic and import offers in Latin America, buyers were slow to respond to the fresh higher quotes this week, sources said.
Earlier market talk suggested demand rose despite the higher prices, due to concerns over tighter PET availability in the region. This week, however, the higher prices may have discouraged some buying, according to sources.
Regional participants said the outlook was unclear following tepid response to higher priced PET quotes.
Sources in Colombia blamed soft domestic PET demand on extended rainy weather driving down bottled beverage demand.
Meanwhile, sellers in Colombia could not target material to Venezuela, their traditional export destination. Debts to Colombian suppliers remained pending and, as a result, trade between the two countries was limited.
Chile and Mexico looked forward to Independence Day celebrations toward the end of this week, dampening some of the earlier momentum.
The prominent exception was Brazil, where resin demand remained strong amid warming weather and buoyant economic activity.
PET import prices into Chile before increases were at $1,300-1,320/tonne CFR (cost & freight), as assessed by ICIS.
US PET producers include DAK, Mossi & Ghisolfi (M&G), Eastman Chemical and Indorama.
($1 = €0.78)
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