03 December 2013 23:01 [Source: ICIS news]
HOUSTON (ICIS)--Polyethylene terephthalate (PET) market participants in Latin America are expecting prices for December to remain stable at November levels, in line with a steady trend for resin and feedstocks in Asia with only moderate fluctuations.
PET demand in Latin America varies according to seasonality, depending upon the region. Sources said that activity has picked up significantly in South America, particularly in Brazil, as higher temperatures drive consumption of soft drinks. The opposite is happening in Mexico and the US as winter sets in.
Market participants in northern South America said that bottled drink consumption rises prior to the year-end holidays, but then drops significantly between 15 December and 15 January, as industrial plants close for a vacation period.
Also playing into demand dynamics in December is the inventory reduction to minimise tax exposure.
In Brazil, December PET prices remained stable after the $120/tonne decline in November driven by weaker Asian markets. After the decreases, Brazilian PET domestic prices for November were assessed at $1,890-1,990/tonne (€1,399-1,473/tonne) DEL (delivered).
PET producers in Latin America are Mossi & Ghisolfi (M&G), Indorama and DAK.
($1 = €0.74)
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