16 May 2012 03:33 [Source: ICIS news]
HOUSTON (ICIS)--Polyethylene terephthalate (PET) markets in Latin American resin importing countries continue to weaken in May and are likely to soften further in June, in line with softer Asian resin and feedstock prices, sources said on Tuesday.
May resin prices have remained flat from the previous month or dropped slightly in PET-producing countries in Latin America, where participants also expect June PET prices to track the trend in Asia.
PET prices in Asia have been on a downtrend for the past three months. Prices fell from $1,500-1,550/tonne (€1,185-1,225/tonne) CFR (cost & freight) northeast Asia in late February this year to $1,390-1,440/tonne CFR northeast Asia on 11 May, ICIS data showed.
PET demand is particularly weak in Brazil, in line with the cold season and low consumption of bottled drinks. Business is not especially strong in Mexico or the US, where there has been a slow start to the peak summer season, sources said.
PET prices in Mexico softened in the domestic and export markets, driven by the weak market dynamics in Asia as well as regional demand.
Domestic PET prices in Mexico were assessed at $2,280-2,370/tonne DEL (delivered), after a 1.5-2.0 cents/lb decline in May, according to ICIS.
Domestic prices in Mexico declined by $35/tonne in April.
PET producers include DAK Americas, Mossi & Ghisolfi, and Indorama.
($1 = €0.79)
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