PET prices decline on Pacific coast of South America, driven by Asia

17 April 2012 23:04  [Source: ICIS news]

HOUSTON (ICIS)--Polyethylene terephthalate (PET) was quoted on the Pacific coast of South America this week at $1,680-1,710/tonne (€1,277-1,300/tonne) cost and freight (CFR), down from $1,710-1,780/tonne CFR in the previous week, on softening markets in Asia, sources said on Tuesday. 

In other Latin American regions, PET prices were stable at mid-April after rolling over from March, with the exception of Argentina, where prices rose on a delayed response to previous price firming in Asia.

However, resin prices throughout Latin America are projected to soften in May on direction from weakening Asian resin and feedstocks, market participants said.

Demand throughout Latin America is soft in line with seasonality, because the peak soft-drink period has ended in South America, and the weather has yet to heat up with the beginning of summer in the US and Mexico.

In the Asia Pacific region PET bottle-grade chip prices were stable to soft despite steady demand, on resistance from buyers and weakening indications from the polyester fibre and yarn market.

PET prices in Asia dropped last week by $10-15/tonne to $1,500-1,520/tonne FOB (free on board) Korea and $1,510-1,530/tonne FOB Taiwan.

PET producers in Latin America are DAK Americas, Mossi & Ghisolfi, and Indorama.

($1 = €0.76)

By: Ron Coifman
+1 713 525 2653

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