08 January 2013 22:37 [Source: ICIS news]
HOUSTON (ICIS)--A $70/tonne (€53/tonne) price increase proposed for January polyethylene terephthalate (PET) was fully implemented in Brazil, driven by rising prices for the resin and feedstocks in Asia, sources said on Tuesday.
PET domestic prices in Brazil are assessed at $1,970-2,070/tonne DEL (delivered) after the January hike.
Local sources said demand is robust, supported by unusually hot weather in parts of the country during the peak soft-drink season.
December prices in Brazil were flat from November and October, after a $70/tonne hike in September and $30/tonne boost in October.
PET prices elsewhere in Latin America are also expected to rise in January on local initiatives supported by the firming trend in Asia, regional participants said.
While increases were implemented in Argentina and Brazil in the first days of this month, higher prices for January are under discussion in Colombia and Mexico.
December PET prices were mostly flat in Latin America, with the exception of Argentina, where an increase was implemented early last month.
Although slowing activity was expected for the year-end holiday vacation period, the peak season is driving bottled-drink and PET demand in the southern cone of South America. Unusually hot weather noted in parts of Brazil at the beginning of January continues to support beverage consumption, sources said.
However cold weather in Mexico and the US keeps a lid on PET business in North America.
PET producers in Latin America are DAK Americas, Indorama and Mossi & Ghisolfi.
($1 = €0.76)
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