July PET demand in Argentina up on lower prices, short inventories

19 July 2011 18:15  [Source: ICIS news]

HOUSTON (ICIS)--Polyethylene terephthalate (PET) demand in Argentina has improved in July over June as processors replenish depleted inventories, market sources said on Tuesday.

PET buyers minimised purchases in June as resin prices declined in Argentina and other global regions, waiting for the market to reach bottom.

PET domestic prices in Argentina were heard as low as $2,000/tonne (€1,420/tonne) DEL (delivered) this week. PET values were assessed at $2,345/tonne DEL and higher at end-May, according to ICIS.

July demand was healthy even during the current off-season for bottled drinks, sources said. Declining prices and thinning resin stocks were driving participants to purchase in July.

The market is expected to improve further in August, as industry begins to prepare for the peak bottled-drink season in the fourth quarter, participants said.

Local sources said the government natural gas rationing prioritising private consumption has not affected the PET industry.

DAK Americas produces PET in Argentina.

($1 = €0.71)

For more on PET visit ICIS chemical intelligence

By: Ron Coifman
+1 713 525 2653

For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.

Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.

Printer Friendly