02 October 2012 23:03 [Source: ICIS news]
HOUSTON (ICIS)--Producers are seeking October price increases of 6 cents/lb ($132/tonne, €103/tonne) in Mexico for polyethylene terephthalate (PET) as a result of higher resin and feedstock costs in the US and Asia, sources said on Tuesday.
The initiatives were made despite tapering demand at the end of the peak season in Mexico, sources said, driven by higher resin and feedstock values in the US and Asia, sources said on Tuesday.
Negotiations over the proposed increases are ongoing, but some initial agreements were noted at plus 5 cents/lb.
Continuing rains in Mexico are weakening demand, which had already been declining as the peak season for bottled beverages ends.
However, an uptick in business is expected in Mexico for November, in anticipation of soft-drink demand for the year-end holidays. PET activity is then projected to drop as the vacation period begins in December.
PET domestic prices in Mexico are assessed at $2,260-2,350/tonne DEL (delivered) before any October increases.
PET prices throughout Latin America are expected to firm in October, as increases proposed at different levels, depending on country, are being discussed in the region.
PET producers in Latin America are DAK Americas, Indorama and Mossi & Ghisolfi.
($1 = €0.78)
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