27 November 2012 22:58 [Source: ICIS news]
HOUSTON (ICIS)--A $50/tonne hike announced for December polyethylene terephthalate (PET) in Argentina is supported by strong demand during the peak season, a local market participant said on Tuesday.
Discussions on the initiative have started, but results of negotiations would not surface before next week.
Demand in Argentina will probably start declining in mid-January after the expected peak in December, but could remain high longer depending on the duration of the warm weather, participants said.
Otherwise, the PET market was steady in the second half of November, after the $100/tonne price increase assessed early in the month. Prices also rose by $70/tonne in October and $60/tonne in September following direction from Asia.
Participants, however, are disheartened by continued restrictions on the purchase of foreign currency to pay for imports, and by widespread labour strikes and public protests against the government, which are dampening the market outlook.
The official exchange rate stands at Ps4.82 per dollar, but the so-called blue dollar, the unofficial parallel exchange rate, is at Ps6.46.
PET domestic prices in Argentina for November are assessed at $2,320-2,420/tonne (€1,786-1,863/tonne) DEL (delivered).
Elsewhere in Latin America, market direction for December is yet to emerge, regional sources said.
PET producers in Latin America include DAK Americas, Indorama and Mossi & Ghisolfi.
($1 = €0.77)
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