Polymer prices expected to dip in Latin America

02-Apr-14

Market participants in Latin America are most likely to believe that polymer prices are going to decrease in the coming months. This is a key reason for the sluggish market in countries such as Brazil, Peru and Colombia, sources said on the sidelines of the American Fuel & Petrochemical Manufacturers' annual meeting in Texas, as per Platts. Olefin prices in Asia, have being stable to soft, which reinforces the idea of lower prices toward Latin American markets. A US-based trader that sells material from Asia to Latin America agrees with the trend. A trader in talks with Asian suppliers has seen an inclination for lowering prices. The expectation is that prices may drop in June and July. However, higher offers are also being heard in the market. For instance, a PP homopolymer grade offer from South Korea was heard last week at US$1630-1650/mt CFR Peru. Chilean offers were heard in a range of US$1630-$1650/mt CFR Peru, while an offer from India was heard Sunday at $US1670/mt CFR Peru, around US$20 higher.