AFPM ’19: Latin American PET price range widens amid feedstock uncertainty

HOUSTON (ICIS)–Price ranges for polyethylene terephthalate (PET) in Latin America widened as uncertainty regarding April feedstock costs affect market sentiment. Price fluctuations seen in some sporadic transactions reflected price uncertainties heading into this year’s International Petrochemical Conference (IPC).

Discussions in the Latin American region focused on potential firmer feedstock numbers that would trigger resin price increases of $30-50/tonne in April in several countries. However, flow of reasonably priced material across the region appeared to cloud any expectations of firmer prices any time soon.

Although spot prices for US feedstock paraxylene (PX) shed some $15/tonne in mid-March, market participants anticipate firmer values in the coming months as demand from downstream markets picks up.

Furthermore, firming feedstock numbers in Asia may also lead to hopes for higher resin prices in the coming months.

March PET prices in Argentina and Brazil increased by $50/tonne on the back of rising feedstock prices.

Prices for bottle chips in Argentina edged up to $1,600-1,750/tonne delivered (DEL), while resin prices in Brazil moved up to $1,500-1,580/tonne DEL.

Suppliers were able to implement the increase despite the low buying interest in Argentina resulting from the economic crisis the country has been trying to emerge from.

Likewise, sellers in Brazil implemented the hike although demand has shown slight improvement.

In Colombia, PET buyers saw cheaper Asian offers as savings in shipping costs were passed on to the resin buyers yielding resin prices roughly $100/tonne lower than February numbers. The decline in freight costs stemmed from extra cargo space due to reduced trading between the US and China on the back of the prolonged tariffs talks between the two countries.

In Mexico, resin prices remained stable despite mixed price ideas surfacing the market. Talk of potential higher feedstock prices in the US in April may support firmer price ideas in Mexico.

DAK Americas, Mossi & Ghisolfi and Indorama are PET producers in the Americas.

Hosted by the American Fuel & Petrochemical Manufacturers (AFPM), the IPC takes place on 24-26 March in San Antonio, Texas.

Focus article by Luly Stephens