10 April 2012 22:31 [Source: ICIS news]
HOUSTON (ICIS)--Latin American prices for polyethylene terephthalate (PET) are expected to remain flat in April and start declining by May, tracking Asian resin and feedstock markets, sources said on Tuesday.
Market sources noted soft demand throughout Latin America. Activity is slow in picking up as the weather warms in Mexico and the US after the peak season ended in Argentina and Brazil
Domestic PET prices in early April are assessed at $2,120-2,220/tonne (€1,611-1,687/tonne) DEL (delivered) Brazil and $2,100-2,200/tonne DEL Colombia, rollovers from March.
The exception to the pricing trend is Argentina, where PET prices in April are still tracking the earlier increases for Asian PET. In addition, the Argentinean government’s restrictions on imports of raw materials and equipment are causing participants to carefully manage inventories and maintain prices high.
In Argentina, PET prices rose by $120/tonne in April, reaching $2,190-2,290/tonne DEL. The rise came after the $150/tonne hike of March, partly in response to government restrictions on imports, which are slowing the PET sector, according to sources.
The early declaration of imports, implemented on 1 February, is restricting imports of raw materials and equipment parts into Argentina, sources said. The PET producer is managing resin and raw materials inventories, as the import restrictions also apply to feedstocks ethylene glycol (EG) and purified terephthalic acid (PTA).
Off-peak demand for PET and soft drinks is slow in Argentina, corresponding to market expectations.
PET producers include DAK Americas, Mossi & Ghisolfi and Indorama.
($1 = €0.76)
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