lo que se viene para el segundo trimestre
Latin American PVC: Down $10/mt amid slow demand
By Staff
Published on - Wed, 15 Apr 2015 17:38:28 BRT
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Asia-origin product pressure prices in Peru
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Brazil domestic price rises 20%: Braskem source
Import assessments in Brazil and Peru fell $10/mt week on week, assessed Wednesday at $925-$935/mt CFR basis for both markets on what sources described as stubbornly slow demand. A US-based trader said US-origin resin could not be sold below $960/mt CFR basis into Peru, but admitted Asia-origin material was being seen at $930/mt levels. Offer levels into Peru and elsewhere in South America remained $960-$1,000/mt CFR basis, sources said. Sellers since last week indicated having trouble moving product offered as low as $950/mt CFR basis, describing buy interest as thin. In Brazil, sources said buyers remained reticent to import material given the strength of the US dollar vesus the real. Notional trading levels were pegged by one source at $930/mt CFR basis. Sources said Europe did not have material to export and prices from Asia were not competitive. "
Price levels at $940/mt today are already too high," a Brazil-based trader said. Wednesday's exchange rate was 3.0416 reals/US dollar. "Nobody wants to take risks importing," the PVC trader said. In the domestic market, Braskem raised April PVC prices by 20%, a company source said last week, with participants pegging domestic prices in Brazil at Real4,100/mt ($1,331/mt), delivered basis. The increase was based on thin global supply and accounted for the real's persistent weakness, the source with Braskem said.
RATIONALE:
CFR Peru: The assessment fell $10/mt week on week to $925-$935/mt CFR basis, with market sources pegging the market no higher than $935/mt CFR basis amid aggressive offers for Asia-origin material and continued lack of buying interest. Offers for US-origin material at $960/mt CFR basis were also considered, with the price assessed $30/mt below the offer level to account for negotiation.
CFR Brazil: The assessment fell $10/mt week on week to $925-$935/mt CFR basis on weak buying interest for imports. The price was based on trading levels pegged by one source at $930/mt CFR basis. The assessment also took into consideration offer levels of $940/mt CFR basis, discounting $10/mt to account for negotiation. *Weekly prices can be found on PCA 818.