29 May 2012 23:39 [Source: ICIS news]
HOUSTON (ICIS)--Polyethylene terephthalate (PET) suppliers in Mexico are expected to settle for lower prices in June, driven by weaker resin and feedstock markets in Asia, but the amount of the decline for domestic and export resin is under negotiation, sources said on Tuesday.
Discussions should be starting next week, with suppliers proposing a 2 cent/lb drop, while domestic buyers said a 3 cent/lb decrease in June would not be unexpected given the weakness of Asian markets.
May PET domestic prices in Mexico are assessed at $2,280-2,370/tonne (€1,824-1,896) DEL (delivered), after dropping by 1.5-2.0 cents/lb from April.
Demand for PET in Mexico and the US is unusually weak at the beginning of the North American peak season. PET consumers are not rushing to buy because of expectations of lower prices, sources said.
PET producers in Mexico are DAK Americas, Indorama and Mossi & Ghisolfi.
($1 = €0.80)
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