Volatility in Asia drives up Brazil and Argentina PET prices

23 November 2010 00:03  [Source: ICIS news]

HOUSTON (ICIS)--Higher polyethylene terephthalate (PET) and feedstock prices in Asia pushed up resin prices in Brazil and Argentina, regional sources said on Monday.

In Brazil, participants confirmed full implementation of two November price increases for PET, one at $50/tonne (€37/tonne) for 1 November and another at $100/tonne for 8 November.

Domestic PET prices in Brazil before the hike stood at $1,795–1,835/tonne delivered (DEL), as assessed by ICIS.

Two additional hikes were proposed for December, one at $70/tonne and another at $190/tonne, totalling $260/tonne for next month.

Participants in Brazil said the $70/tonne increase for December would likely be implemented, driven by strong domestic demand and by higher resin and feedstock prices regionally and globally.

However, the second December nomination at plus $190/tonne would probably meet some resistance, and might be only partially successful.

In Argentina, November PET prices rose by $50–60/tonne over October and were assessed at $1,580–1,640/tonne delivered (DEL) following implementation.

Regional sources noted that price increase initiatives in Argentina have been slower to surface than in Brazil.

Market talk suggested an additional nomination for December at plus $120–150/tonne.

Temperatures in Argentina rose in the past few days following recent moderate weather, sources said. As a result, demand for bottled drinks improved and was expected to continue strong through year-end.

South American PET producers include Mossi & Ghisolfi (M&G) and DAK Americas.

($1 = €0.73)

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By: Ron Coifman
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