Market participants in Latin America are most likely to believe that polymer prices are going to decrease in the coming months, one of the main reasons the market is quite slow in countries such as Brazil, Peru and Colombia, sources said on the sidelines of the American Fuel & Petrochemical Manufacturers' annual meeting in San Antonio, Texas.
Olefin prices in Asia -- ethylene and propylene -- have being stable to soft, which reinforces the idea of lower prices toward Latin American markets.
"Why I would buy now if there is signs that prices may drop?" a Peruvian distributor said.
A US-based trader that sells material from Asia to Latin America agrees with the trend.
"We have being talking directly with Asian suppliers and they have shown an inclination for lowering prices. The expectation is that prices may drop in June and July," the trader said.
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 $1,630-$1,650/mt CFR Peru. Chilean offers were heard in a range of $1,630-$1,650/mt CFR Peru, while an offer from India was heard Sunday at $1,670/mt CFR Peru, around $20 higher.
"This can be an indication of the contrary," a source with Indelpro said Sunday.
