28 September 2010 22:16 [Source: ICIS news]
HOUSTON (ICIS)--Increases as high as $33/tonne (€24/tonne) were expected for October polyethylene terephthalate (PET) in Argentina, supported by higher prices in Brazil and Asia, market participants said on Tuesday.
Although a PET hike nomination surfaced at $33/tonne, buyers and sellers said ongoing negotiations would likely result in a smaller increase.
A seller said the effective October price increase would probably not be implemented under $30/tonne, however, and was contingent on volumes and payment terms.
The PET market in Argentina was steady in September amid modest but gradually rising demand in anticipation of the coming peak-season for bottled drinks, local sources said.
Cold weather and adequate resin/preform inventories limited purchases in September, but October business was expected to strengthen significantly as the weather became warmer, participants said.
In addition, prices rose in Brazil and Asia, regions that supply PET to Argentina.
PET domestic prices in Argentina were assessed by ICIS at $1,500-1,560/tonne DEL (delivered).
PET suppliers to Argentina include DAK, Mossi & Ghisolfi (M&G), and Eastman Chemical.
($1 = €0.74)
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