Polymer prices in Latin America expected to be stable or dip in April

31-Mar-15

Polymer prices in Latin America are expected to remain stable to lower in April due to weak buy interest, as per sources in Platts. At the American Fuel and Petrochemical Manufacturers' annual meeting, it was opined that the lack of buy interest was a result of weakening currencies in the region, economic and political uncertainty in Brazil, and depressed crude pricing. "Brazil is a key region in the Mercosur region and South America, so if Brazil grows, South America grows too," a source with a Chile-based polymer distributor said. "The dollar appreciation against the Brazilian currency has been much accentuated." With Brazil struggling, weak demand was spilling into other regional markets, including Argentina, Colombia, Paraguay and Uruguay. Access to credit and a palpable increase in late/delinquent payments were hindering trade, sources said in Platts. Though the market has seen demand, the traders await receipt of payments to make new purchases. Continued weakness in crude was also making buyers hesitant. Because of the weak demand, PE prices that weeks ago were expected to reach US$1400/mt CFR into April might not reach that level anytime soon, sources said.