20 August 2013 22:07 [Source: ICIS news]
HOUSTON (ICIS)--Offers of polyethylene terephthalate (PET) into countries along the Pacific coast of South America are firming in line with higher resin and feedstock prices in Asia, while domestic prices in Brazil and Argentina have remained stable from July to August, sources said on Tuesday.
Offers of Asian PET have risen from $1,530-1,550/tonne (€1,148-1,163/tonne) CFR (cost & freight) Pacific coast of South America about 10 days ago to $1,550-1,570/tonne CFR Pacific coast of South America this week.
At end July, PET prices had been assessed lower at $1,490-1,510/tonne CFR Pacific coast of South America.
Domestic PET prices have remained stable from July to August in Brazil and Argentina.
However, the firming effect from Asia is projected to drive prices higher, albeit at a lag, in the two PET producing countries. Regional sources said that domestic PET prices are expected to trend higher by September or October.
Prices in Latin American PET producing or importing countries tend to track market dynamics in Asia, although generally with a delay. PET importing countries along the Pacific coast of South America are usually the first in the region to be affected by the changes in Asian markets.
PET demand in Latin America is stable but not stellar amid adequate availability, whether in the peak season for bottled drinks in North America or the off-season in South America, sources said.
PET producers in Latin America are Mossi & Ghisolfi (M&G), Indorama and DAK.
($1 = €0.75)
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