26 February 2013 22:55 [Source: ICIS news]
HOUSTON (ICIS)--The domestic polyethylene terephthalate (PET) producer in Brazil announced a $40/tonne (€30/tonne) price increase for March, driven by raw material costs, local sources said on Tuesday.
PET demand is declining as the peak soft-drink season draws to a close, sources said. However, resin supplies are gauged as tight because of particularly strong demand from October 2012 through mid-February, with buyers still noting some delays in resin shipments, while domestic production is said to be normal.
PET prices rose by $85/tonne early in February, in addition to a $70/tonne increase in January from December.
Market participants noted concern about the Foreign Trade Resolution of 7 February, establishing public consultation procedures on the duties applied to PET imports, potentially raising the tariff to 26% from 14%. The decision to raise the import duty could be finalised by 7 March, contingent on the results from the consultation, sources said.
February PET domestic prices in Brazil stand at $2,055-2,155/tonne DEL (delivered).
The PET producer in Brazil is Mossi & Ghisolfi (M&G).
($1 = €0.76)
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