HOUSTON (ICIS)--Brazil’s polyethylene terephthalate (PET) prices for July were flat from June amid stable demand, sources said on Monday.
June PET prices in Brazil were assessed at $1,265-1,365/tonne DEL (delivered).
Local industry sources noted hints of improvement in market sentiment and expected a more significant recovery once the peak season gets underway.
The charges of corruption against President Michel Temer had driven uncertainty in PET and other markets in Brazil in the last week of June, sources said.
President Temer had been charged with corruption, an indictment that was expected to contribute to political and economic uncertainty in the country and possibly in the region. South American participants were hoping for a major improvement in Brazil’s economic recovery this year, which so far has been lukewarm at best. Participants expect that a pickup in general demand in Brazil would significantly boost business in the rest of South America.
Meanwhile, industry participants in Brazil monitored currently steady-to-firm markets in Asia, as the PET industry in Brazil is indexed to Asian markets. In the event that price changes in Asia become more significant, Brazilian PET prices indexed to Asian markets will change accordingly but at a two-month lag.
PET supply is gauged as in balance with demand, amid steady resin production in Brazil, according to sources.