August PET prices up 3 cents/lb in Mexico on healthy demand

16 August 2011 22:28  [Source: ICIS news]

HOUSTON (ICIS)--Polyethylene terephthalate (PET) prices in Mexico strengthened by 3 cents/lb ($66/tonne, €46/tonne) in August on healthy peak-season demand from the domestic market, despite some softness in the southeast regions because of heavy rains, participants said on Tuesday.

Higher PET prices in the US, along with firming sentiment in resin and feedstock markets in Asia, also contributed to the outlook in Mexico.

Price-increase announcements of 4 cents/lb for August had surfaced in Mexico by late July, on pressure from rising PET and upstream feedstock paraxylene (PX) prices in Asia.

Some domestic small-volume business is being concluded at a price increase of 4 cents/lb, sources said.

PET buyers in Mexico had said that an increase was inevitable this month, but prices would probably be agreed somewhat lower than 4 cent/lb nominations, at around 3 cents/lb.

Export prices of Mexican PET into South America also rose by approximately 3 cents/lb in August, according to market participants in Mexico and Colombia, a key destination for Mexico’s PET exports.

Assessed spot export prices were confirmed higher with market participants in early August.

July PET domestic prices in Mexico are assessed at $2,095–2,245/tonne DEL (delivered), according to ICIS.

PET producers in Mexico include DAK Americas, Mossi & Ghisolfi and Indorama.

($1 = €0.69)

For more on PET visit ICIS chemical intelligence

By: Ron Coifman
+1 713 525 2653

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