04 September 2012 23:06 [Source: ICIS news]
HOUSTON (ICIS)--Polyethylene terephthalate (PET) domestic prices in Mexico rose by 4 cents/lb for September, driven by higher feedstock and resin prices in Asia and the US and producers’ initiatives to recover margins, sources said on Tuesday.
The 4 cent/lb ($88/tonne, €70/tonne) hike is the result of discussions on proposed 5-6 cent/lb increases in Mexico for this month and follows a 5 cent/lb boost in August.
With the increase, domestic prices for September in Mexico are assessed at $2,260-2,350/tonne DEL (delivered).
The price increase was implemented despite softening demand for bottled drinks, pre-forms and PET resin, as the peak soft-drink season in Mexico winds down, sources said.
Various price increase initiatives for September PET have also been successful in Argentina, Colombia and Venezuela on similar market dynamics.
In contrast to tapering PET demand in the northern hemisphere, business in the southern cone of South America is gradually increasing as the weather warms, participants said.
PET producers in Latin America include DAK Americas, Indorama and Mossi & Ghisolfi (M&G).
($1 = €0.79)
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