20 December 2011 22:56 [Source: ICIS news]
HOUSTON (ICIS)--Argentina market participants expect domestic polyethylene terephthalate (PET) prices to fall by around $70/tonne into January from December, lagging earlier weakness in Asian markets, a source said on Tuesday.
Some sources suggested the projected drop in Argentina was made to better compete with low-priced imports.
Domestic PET prices in Argentina fell by $60/tonne from November to December, also on direction from Asian resin and feedstock markets.
December domestic prices in Argentina stand at $2,040-2,140/tonne (€1,571-1,648/tonne) DEL (delivered).
PET demand is adequate during the ongoing peak season for bottled drinks, according to sources in Argentina.
However, the outlook for January PET prices elsewhere in Latin America is mixed, depending on country, according to participant commentary.
PET prices are expected to roll over from December in Mexico and Colombia. In Brazil, depending on the source, January direction is projected at a rollover or a price drop.
Latin American PET market participants are projecting higher prices later in the first quarter, especially if the recent uptick in PET and feedstocks in Asia is sustained.
PET demand is soft throughout the region on seasonality and year-end destocking, sources said. Peak-season and end-year business is considered done in the southern cone of South America, while Colombia, Central America and Mexico are in the bottled-drink off-season.
Latin America PET producers include DAK Americas, Mossi & Ghisolfi, and Indorama.
($1 = €0.77)For more on PET visit ICIS chemical intelligence
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