Brazil PET supply remains tight on Mossi & Ghisolfi FM

09 May 2011 15:56  [Source: ICIS news]

SAO PAULO (ICIS)--Supplies of polyethylene terephthalate (PET) in Brazil are expected to remain tight through May as a result of the Mossi & Ghisolfi (M&G) force majeure (FM) declaration, a participant said on the sidelines of the Brasilplast trade fair and conference.

Although M&G announced an $80/tonne (€56/tonne) price increase for this month, buyers did not consider the hike implemented, as no fresh domestic resin would be available at least until the FM was lifted, probably around 23 May, according to the source.

PET demand in Brazil improved in April over a soft February-March. The Brazilian economy slowed, likely a result of some caution from industry players on the change of government.

Meanwhile, M&G was said to have purchased 5,000 tonnes PET from DAK. The imported material was expected to arrive sometime in May, according to the source.

Brasilplast is a major fair for the plastics industry in South America and is organised by Reed Exhibitions Alcantara Machado.

Brasilplast runs 9-13 May.

($1 = €0.70)

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By: Ron Coifman
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