14 September 2012 16:05 [Source: ICIS news]
By Ron Coifman
HOUSTON (ICIS)--Latin American polyethylene terephthalate (PET) markets firmed in September, driven by higher prices for resin and feedstocks in Asia, according to industry participants.
Regional sources said PET prices in Argentina, Brazil, Mexico, Colombia and Venezuela are up this month by various amounts, depending on country.
Demand is slowing in Mexico and the US as the peak season ends, but business in South America is picking up on approach of summer.
In the US, PET prices for September are projected to rise by 4-5 cents/lb ($88-110/tonne) (€68-85/tonne) on higher costs of raw materials. August PET prices stood at 77-82 cents/lb DEL (delivered), up by 4 cents/lb from July.
In Argentina, PET prices rose by $60/tonne on DAK Americas’ initiative amid token buyer resistance, supported by rising demand on the approach of the peak season and the increasing costs of feedstocks and resin prices in Asia, sources said.
PET prices in Argentina rolled over from June to July, but dropped by $70/tonne in August.
In Brazil, PET prices are assessed up by an average of $70/tonne for September, on $90/tonne increase initiatives, according to input from market participants.
Although increases were heard implemented by as much as $90/tonne for this month, sources said that smaller increases of $60/tonne were also applied. This month’s assessments could be again revised pending additional confirmation.
Participants said that an additional $80/tonne hike was being proposed for October, but buyers noted that modestly rising demand will probably not support the initiative in full.
PET prices in Brazil fell by $100/tonne in July and remained flat into August.
Local sources said demand is improving on bottled-drink seasonality, as well as on the country’s brighter economic outlook for the second half of the year, supported by government incentives to industry and easing credit.
In Colombia, domestic PET prices rose to $1,950-2,000/tonne DEL, up from $1,850-1,900/tonne DEL in August and from $1,800-1,900/tonne DEL in July, driven by global market dynamics.
Prices for PET imports from Mexico are assessed at $1,680-1,700/tonne CFR (cost and freight) Colombia for September, up from $1,640-1,650/tonne CFR Colombia in August, on partial implementation of 4 cent/lb price increase initiatives.
August PET import prices were assessed $100/tonne higher from July.
Sources said demand is steady, although not spectacular.
In Mexico, PET domestic prices were assessed higher by 4 cents/lb for September amid little resistance from buyers to suppliers’ initiatives. The increase tracks the regional and global trend.
In August, PET prices in Mexico rose by 5 cents/lb.
Sources in Mexico said demand in North America was slowing with the approach of autumn, when the peak bottled-drink season ends.
Prices for Mexican PET into Venezuela in September were gauged at $1,760-1,780/tonne CFR Venezuela, lower than a $1,800-1,820/tonne CFR Venezuela target for this month, but up from $1,720-1,740/tonne CFR Venezuela in August and $1,620-1,640/tonne CFR Venezuela in July.
On the Pacific coast of South America, PET from China was quoted this month at a minimum of $1,540/tonne CFR with 120 days payment terms, according to regional sources, up from $1,500/tonne CFR Pacific coast of South America at the end of August. Demand in the region is rising in line with seasonality.
PET producers in Latin America include DAK Americas, Indorama and Mossi & Ghisolfi (M&G).
($1 = €0.77)
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