31 July 2012 21:17 [Source: ICIS news]
HOUSTON (ICIS)--Polyethylene terephthalate (PET) prices in Argentina will be declining in August by about $70/tonne, lagging decreases in other regions, market participants said on Tuesday.
Demand remains seasonally weak, while concerns about the world economy are dampening market sentiment, according to local sources.
Government controls to curb the exit of dollars and improve Argentina’s trade balance continue to slow business and industrial activity.
The degree of difficulty to comply with import license requirements is mixed, depending on the sector, company and product, sources said. Some industry participants complained that June and July were particularly challenging to importers, although others noted no major constraints.
August demand is expected to improve moderately through the production chain, as buyers start to build stocks for the peak season.
The sole PET production plant in Argentina is undergoing a 20-day maintenance, which is expected to end this weekend. Inventories were managed for the event, allowing for on-schedule resin deliveries, sources said. The maintenance is scheduled once every two years.
July PET prices rolled over from June at $2,160-2,260/tonne (€1,771-1,853/tonne) DEL (delivered), after a $30/tonne decline from May.
PET producers in Latin America are DAK Americas, Indorama and Mossi & Ghisolfi.
($1 = €0.82)
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