21 May 2012 22:59 [Source: ICIS news]
HOUSTON (ICIS)--Polyethylene terephthalate (PET) prices in Argentina are likely to drop by $20-40/tonne (€16-31/tonne) in June from May, driven by weakening prices of resin and feedstocks in Asia, sources said on Monday.
PET demand and market sentiment in Argentina are weak, according to participants, as Argentina’s government restrictions on imports have dampened industrial activity.
As a result, local sources are projecting lacklustre growth in the second semester of 2012.
May PET prices are assessed flat from April at $2,190-2,290/tonne DEL (delivered).
Import licenses required since February are a deterrent to smooth industrial and commercial operations, according to participants. Additionally, the expropriation of Spain’s Repsol YPF oil and gas production and investments in Argentina continues to dampen sentiment.
The Argentinean government launched in late April an anti-dumping probe on PET chips from China, South Korea, Taiwan, India and Thailand, which is further discouraging business, sources said.
Additionally, the Argentinean government imposed new currency restrictions, almost completely closing the sale of dollars by currency exchange houses and banks. Local sources said that although the regulations affect private individuals and not outstanding debt commitments to foreign suppliers, the new rules also contribute to the weak sentiment among market participants.
PET producers in Latin America are DAK Americas, Mossi & Ghisolfi, and Indorama.
($1 = €0.78)
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