07 August 2012 19:47 [Source: ICIS news]
HOUSTON (ICIS)--A polyethylene terephthalate (PET) producer in Brazil announced a $90/tonne (€73/tonne) increase for 1 September, supported by recent trends for the resin and feedstocks in Asia, sources said on Tuesday.
Brazilian PET prices for August remained flat from July because of weak domestic demand, despite earlier talk of $40-50/tonne hikes for this month. Previously, July PET prices dropped by $100/tonne from June.
PET business is slow during the off-peak bottled-drink season in Brazil, sources said.
Market participants also noted the country’s overall soft business and commercial environment. However, industry sources expected demand to pick up as the temperature warms, since activity improves seasonally in the second half of the year.
In other Latin American countries, PET markets are firming in August and the trend will probably continue into September, sources said.
However, regional sources questioned the drivers pushing up PET and feedstock paraxylene (PX) prices, noting that in Asia, demand is soft amid ample supply and polyester fibre business is less than robust.
PET prices in Brazil for August are assessed at $1,800-1,900/tonne DEL (delivered).
PET producers in Latin America include DAK Americas, Indorama and Mossi & Ghisolfi.
($1 = €0.81)
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