28 February 2012 23:22 [Source: ICIS news]
HOUSTON (ICIS)--March price increase initiatives in Mexico for polyethylene terephthalate (PET) are weakening because of buyer resistance, sources said on Tuesday.
Mexican producers have reduced their March hike proposals to 3 cents/lb ($66/tonne, €50/tonne) from 4 cents/lb.
Resin buyers, however, said that an increase of no more than a 2 cents/lb is justified by feedstock costs as negotiations continue.
Demand in Mexico is slow, as inventory build in preparation for the summer bottled-drink season in North America has yet to start, according to sources.
Despite talk of raising resin stocks prior to the peak season, strong demand for PET is not expected to emerge before April.
Support from price direction in Asia is also uncertain, as upward momentum for Asian PET appears to have weakened despite firm feedstock paraxylene (PX) costs, sources in Mexico said.
PET producers in Mexico include DAK Americas and Indorama.
($1 = €0.75)
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