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4 million tons in 2011/12, driven by an expansion in plantings in most producing countries. However, the projected increase in production is relatively small considering the doubling of prices experienced in 2010/11. Competition from food crops and limited resources (including land, seeds, water, and equipment) are preventing cotton area from rising further in 2011/12. Rising cotton supplies will feed demand in 2011/12, but high prices and competition from chemical fibers are expected to limit growth in mill use to 3%, according to the International Cotton Advisory Committee ( ICAC). World cotton production is projected to exceed mill use in 2011/12 by 1.8 million tons. As a result, ending stocks are projected to increase to 10.1 million tons. The world ending stocks-to-use ratio is projected to rebound from 33% in 2010/11 to 40% in 2011/12, still well below the ten-year average of 50%. The ICAC Price Model forecasts a 2011/12 season-average Cotlook A Index of $1.38/lb. The 95% confidence interval extends from $1.19 to $1.59 per pound. This forecast implies a 15% decline with respect to the 2010/11 expected average of $1.62/lb, but would remain considerably higher than the ten-year average of 60 cents per pound prevailing from 2000/01 to 2009/10. However, caution must be exercised since all commodity markets are subject to great uncertainty. As with any model, the ICAC Price Model is based on a limited number of explanatory variables. Furthermore, the explanatory variables are themselves preliminary estimates or projections obtained under imperfect information. WORLD COTTON SUPPLY AND DISTRIBUTION
* Season-average Cotlook A Index (U.S. $ per pound). ** The price projection for 2010/11 is not based on the ICAC price model.
“Cattle prices are currently at record highs. and if any the major commodities keep on rising. including the possibility of increases in business with Japan after the devastating earthquake and tsunami. which includes agriculture and timber. one in the world-less-China and the other in China. such as gold.S. Wallowa County’s overall economy produces $370 million annually. traders in thecommodities markets don’t seem to react to this news. adding that sheep prices are also at record highs and that the export market for beef has been very strong. During March silver prices rose by over 10% while gold prices didn’t do much. the chart shows how silver prices has been outperforming gold prices especially since mid March 2011. The month of April started off with rises for gold and silver prices. Beef imports totaled 8. Gold and silver prices Outlook and Analysis: The recent decision of ECB to raise its interest rate might push some investors to trade their gold and silver with government bonds. up from 35 percent in 2009. 95% confidence interval: $1. In the chart below are the changes of gold and silver prices during March and April 2011 as the prices are normalized to 100=1/3/2011.74 percent of total U.9 percent last year and accounted for 8.” Williams said. a 55-year low in cow numbers nationally and a robust export market.” The U. Natural resource-based production. beef production. For further projections in the agricultural sector .73 percent of total production.S. in 2010/11 (projections) and in 2011/12 (projections). silver and crude oil. however since this interest raise was expected and wasn’t a high raise. Total beef exports were up 18. “Prediction-cattle will have a good year. in 2009/10 (estimates).19 to $1.*** The price projection for 2011/12 is based on two ending stocks/consumption ratios. Some say it will hold until someone has calves to sell. supported approximately 38 percent of the total economy in the county in 2010. Despite high grain prices. OSU Extension agent John Williams believes the percentage of resource-based production in the county will continue to increase through 2011 largely due to the rise in livestock prices.59 per pound. according to the Oregon State University economist report. exported more beef last year than was imported for the first time since 1947.
9 percent from December 2010 to January 2011.6 percent above last February.3 percent above the February 2010 level.8 percent and processed fruit and vegetable prices dropping 1. the lowest annual increase for restaurant prices since 1955.5 to 4. and feeder hay prices are up marginally.9 percent in February and are 10.5 percent. follow the corn and the weather.4 percent from January to February 2011. cost pressures on wholesale and retail food prices due to higher energy and food commodity prices. The all-food CPI increased 0. the Consumer Price Index (CPI) for all food is projected to increase 3 to 4 percent. When assessing the outlook for hay.3 percent in 2010. and is now 2. Additionally. Beef prices increased 1.6 percent in February 2011 and is up 2.8 percent above last February. Williams notes that corn prices are up with the increase in ethanol production subsidies and use.5 percent in February and is 2.5 to 4. along with grocery store price increases over the past few months. Hay carryover from last year is small. recent floods in Australia and the drought conditions in Russia and China have added to the increase in grain prices. Food-at-home (grocery store) prices are forecast to rise 3. Recent food commodity price increases.Williams looks to the grain market. Food-at-home prices increased by 0. See ERS data on CPI for food and CPI forecasts February 2011 Prices (Not Seasonally Adjusted) The CPI for all food increased 0. Timothy grass prices are high and expected to remain stable.9 . with steak prices up 11.” he said. along with strengthening global food demand. Foodaway-from-home prices rose 1.-with cereal and bakery prices declining 0.3 percent--the lowest annual increase since 1967. The food-at-home CPI increased 0. Williams looks again to corn prices.away-from-home index was up 0. while the food.2 percent in February 2011 and is 1.8 percent between 2009 and 2010.1 percent above the February 2010 level. The allitems CPI was up 0. Although food price inflation was relatively weak for most of 2009 and 2010. In 2011. “I’ve said it before. have pushed inflation projections for 2011 upward. the lowest food inflation rate since 1962. “This is good news for farmers and bad news for cattle producers. increased 0.8 percent from last February. while food-away-from-home (restaurant) prices are forecast to increase 3 to 4 percent.” he said.2 percent and ground beef prices up 9.5 percent for 2011. have pushed ERS’s forecasts for food-at-home inflation up to 3.3 percent. top quality alfalfa is up greatly.
fresh vegetable prices are up 8.9 percent.5 to 5. current forecasts predict some price inflation for fruit prices in 2011. ice cream and related product prices were up 2. with apple prices up 4. Increased inflation for beef and pork products is expected in the first half of 2011.4 percent above the February 2010 level.5 percent.1 percent in February (the sixth monthly increase in the past 13 months) but are 0. Although cereal and bakery product prices declined 0.2 percent.5 to 5. egg prices are now just 0.2 percent but are 1.1 percent above the February 2010 level. cheese prices were down 0.1 percent and are 5. dairy prices were up only 1. However. leading to an overall fresh fruit price decline of 0. Pork prices increased 1 percent in February and are 8.5 percent. with chicken prices up 1.6 percent in 2010. higher projected prices for farm milk in 2011 will lead to increases of 4. and other fresh vegetable prices up 6.5 percent and pork prices 6 to 7 percent in 2011.percent.3 percent. lettuce prices up 19 percent.2 percent and breakfast cereal prices up 1. The fresh fruit index is still up 2.1 percent from last year at this time. tomato prices up 10. and other fresh fruit prices down 2 percent.6 percent this month and are 23. Due to two months of sharp increases in November and December 2010. as reflected in ERS’s forecasts--beef prices are now projected to increase 4. citrus fruit prices up 11. Fresh fruit prices decreased a mostly seasonal 3. However. Egg prices decreased 1. Within the dairy category.8 percent overall in 2010.1 percent below the February 2010 level.4-percent decline from 2008 to 2009). higher wheat commodity costs should begin to affect cereal and bakery . Cereal and bakery product prices were up 0. The fresh vegetable index increased 4.1 percent.7 percent in February.7 percent in February.1 percent.5 percent in February and are 2 percent above prices last year at this time. Dairy prices were up 0.1 percent above last February’s level. with bread prices up 3. and butter prices increased 3. with potato prices up 7. beef and pork prices are now significantly higher than in 2010.3 percent above last February. Processed fruit and vegetable prices increased 0. Poultry prices increased 0.5 percent for retail dairy product prices in 2011 based on current ERS forecasts. banana prices up 5.5 percent and are 3 percent above last February’s prices. prices changed as follows in February: milk prices were up 0.3 percent and other poultry prices (including turkey) up 5.6 percent in February and are 2.4 percent from January to February 2011 and are up 1. following a 1-percent drop in January 2011.1 percent from 2009 (following a 6.1 percent.4 percent overall from last year at this time.9 percent above last February’s level.5 percent over the past year. In 2010. As commodity prices and input costs have risen over the past 9 months. Since last year at this time.9 percent above last February’s level.9 percent in February 2011. Fresh fruit prices fell in 6 of the past 13 months.
food away from home. The CPI for food consumed at home also affects policy evaluation because the effects of many current and proposed policies are evaluated based on CPI measures. The food price level can be influenced by changes in costs incurred by food system firms. Within the nonalcoholic beverages category. both public and private. See ERS data on the CPI for food and CPI forecasts. food at home. ERS regularly updates and provides food price forecasts for the short-term period of 12 to 18 months. These forecasts are a composite of formal model results and judgment. ERS food price forecasts are developed through a three-step process: . The CPI is a composite measure of the level of average prices paid by urban consumers for a defined market basket of goods and services. economy. which measure price inflation for food items.5 percent overall in 2011.5 percent above the February 2010 level. and nonfrozen noncarbonated juices and drinks prices were up 0. The CPI for food at home is a component of the full CPI and is the principal indicator of changes in retail food prices. including food.1 percent in February and are 0.2 percent but are up 5. Policymakers. causing prices to rise 3.S. Researchers at ERS not only produce forecasts of the CPI but also analyze the impact of economic factors on changes in the CPI.2 percent from last February. Monthly Bureau of Labor Statistics’ indexes for all food.product prices over the next few months. food at home. sometimes it is useful to record and analyze a measure of change for the overall level of food prices. ERS estimates the future direction of changes in the CPI for all food. coffee prices were down 0. prices changed as follows in February: carbonated drink prices were down 1 percent and are down 0. Sugar and sweets prices were up 0. The Consumer Price Index (CPI) is the most publicized and most widely used measure of the general level of prices in the U. Background on the CPI for Food Although ERS analyzes changes in retail prices for individual food items.5 to 4. To contribute to the analysis of government and commercial decisionmakers. and food away from home (see data on the CPI forfood forecasts).8 percent from February 2010. Changes in input costs can translate directly into changes in the CPI or may have little or no effect. closely follow the CPI for food consumed at home and its changes. including changes in firms’ costs. and 15 food at home categories are used in conjunction with ERS analysis to adjust the current short-term forecasts for each of the food categories.8 percent in February and are 1.1 percent above last February.
For the actual projections. the weather. underlining the global economic uncertainties. Because these items account for more than half of the at-home food dollar. agricultural policy. price changes for these categories can significantly affect the Consumer Price Index (CPI) for food at home. Every global event in the last three years has either been triggered by commodities or has.First. In the third step. in export markets. gold prices continue to hit new highs with no signs . in nonfarm markets. led to increased influence of commodity prices on the macro-economic environment. The recent events in Egypt are a case in point. The baseline projections are a conditional scenario with no shocks and are based on specific assumptions regarding the macroeconomy. the baseline incorporates provisions of the Farm Security and Rural Investment Act of 2002 (2002 Farm Act) and assumes that current farm legislation remains in effect through the projections period. commodity prices and supplies. and dairy products more than the prices of other food items and to a lesser extent cereals and bakery products. eggs. poultry. Moreover. In particular. commodity currencies like the Australian Dollar and Brazilian Real have shown genuine muscle and there is nothing on the horizon to show that the trend is changing. The stimulus money allocated by several governments worldwide saw a race to acquire natural resources across the world due to increased awareness of this issue. including farm income and food prices. and aggregate indicators of the sector. USDA develops its 10-year baseline projections. Historical data indicate that fresh fruits and vegetables and egg prices are the most volatile food prices that ERS tracks. these short-term forecasts are compared with a computer-based Autoregressive Integrated Moving Average (ARIMA) model that determines whether the ERS short-term forecast falls within an expected statistical range of a 95. Food price forecasts developed using this three-step process are subject to revision if the conditions on which they are based should change significantly. ERS analysts develop the short-term forecasts that incorporate the most recent baseline assumptions and current information on market conditions and expectations. in the feed grain crop outlook.percent confidence interval. in a roundabout way. for example. agricultural trade. and international developments. or in weather-related crop conditions in major fresh fruit and vegetable growing areas. The baseline provides long run projections for the agricultural sector and covers agricultural commodities. Grain price changes affect the price of meats. Even in the ongoingcurrency wars. In the second step. especially for meat items. 2011 promises to be the year of commodities. and expected consumer demand for specific foods. see the USDA Agricultural Baseline ProjectionsBriefing Room. Projections could be affected by changes. weather patterns.
commodity prices are dictated by demand-supply and today’s circumstances point towards increased prices. we have seen prices crash in 2008 due to steep run ups and we have to see if a similar magic number is reached this time round too. several governments worldwide are printing money and using it to spur infrastructure growth and a lot of this money simply finds its way into commodities like copper which are the basic building blocks (which is why copper also seems to have a fairly direct correlation with the global economy). Nevertheless. silver. cotton. Demand will come from several places. for example copper and gold. In addition.g.of abatement. Therefore all signals point to 2011 being a year of where prices are likely to continue climbing and therefore commodities will be the best place to invest in 2011. copper. Add to this the recent currency wars with every country trying to export its way out of recession and you have a really complex situation which will hopefully not lead to global hyperinflation. Prices of several commodities are already at new highs. but the key will remain rising raw material requirement to feed theirinfrastructure programs in China and India. Similarly. But being wiser after our last experience. Expect political action globally as a reaction to increased costs. there is a price at which commodities will simply be too expensive to consume but it’s hard to put a number on it and in any case it is a dynamic number depending on various factors. Financial investment into commodities is also on its way up and many banks are becoming active just the way it was three years ago. Like many other countries. . Sustained strength of the US Dollar could act as a dampener to commodity prices but it’s anybody’s guess how that would be possible in the face of America’s declared policy of easy money. Of course. aluminium etc) – and exporters can find the going tough as the retail consumers in western nations which they typically export to are not really in a position to pay higher prices this time. A counter-argument to the entire situation is that the manufacturing industry will see its raw material prices rise (e. But it does seem that there is a long way to go before this situation actually gets triggered and therefore several commodities are likely to continue to see firm prices for a variety of interlinked reasons. The last time crude oil rebounded strongly from US $ 147 a barrel. today it is already around 90 and still moving up causing budgets to go haywire in many nations including India. producers of commodities are not expanding production to meet new demand because they are not sure if the demand is sustainable – and in the short run this will put pressure on the supply side and aggravate the price situation. But either way. agri-prices will be politically sensitive for us but some price rise may be beyond our control – the incessant rise in crude oil prices will once again entice farmers to convert land currently used for food crops for growing ethanol and other energy alternatives. it is a good idea to have a strategy ready to offset this.
and general weakness in new office. cellphones. Engineered plastics represent one of the most ubiquitous raw materials used in a wide gamut of industries ranging from construction. I wouldn’t wait. Manufacturing output declined resulting in broad based declines in demand for . cameras. such as. the recession and the financial crisis eroded the market’s health. Plant closures. notebooks. Depreciation in home values. decline in new housing starts.Given this situation. rising levels of unemployment. Those who haven’t will find out soon enough. especially during the years 2008 and 2009. game consoles. to mechanical engineering. commercial and residential building projects as a result of lack of credit and rising vacancy rates. scaling back of operating capacity in the auto industry sent ripples of broad based declines across all of the upstream raw material markets including engineering plastics. With the level of economic activity slowing down. cotton. The complete meltdown of the real estate. resulted in adversely impacting residential building construction spends. lower discretionary spends and the ensuing weak consumer demand for personal computers. one of the most important end-users of high-end engineered plastics. World engineered plastics market is forecast to exceed 20 mln metric tons by the year 2015. digital music players. the recession has made a disproportionate impact on industrial production as a result of reduced manufacturing and commercial activity. Given its omnipresent use. industrial manufacturing equipment. crumbling consumer confidence. refrigerators and laundry equipment. heaters. postponement. automotives. If I were investing. All of these factors negatively impacted demand for engineering plastics in the construction/buildings end-use. especially the automotive sector as a result of government stimulus packages will aid in the market’s recovery. capacity idling. Inc. among others. it appears that every investor must go overweight in commodities in his portfolio and the list should contain not just gold but also copper. The sprawling electrical and electronics and consumer appliances industry also succumbed to the inescapable symptoms of the recession. Restoration of health to most end-use markets. and reduction in household wealth. crude oil and silver which seem set to ride the price wave in 2011. The automobile industry. PDA. Most people have already figured out that 2011 will be the year of commodities. housing and construction industry resulted in cancellation. according to New Report by Global Industry Analysts. was also one of the worst hit industries by the recession with automobile production and sales nose-diving. among numerous others.
such as decline in air travel. In the aerospace industry. The already expanding automobile demand in these countries. Lightweight composite nylon resins will therefore find increased adoption in automotive under-the-hood applications as manufacturers shift towards engineered plastics such as nylon 6 or nylon 66 . manufacturing and trade. All of these factors have triggered a decline in production and shipments of passenger and cargo aircrafts. airline consolidation and reductions in airline fleet. improvement in liquidity situation. following a fleeting deceleration in growth. yet strong fracture resistant automotive plastics. Future growth will be driven by the need to replenish depleting inventories in the supply chain as a result of resurging production activities on wings of improving enduser demand after two years of stagnation. in addition to increased use of polycarbonate in combination with other plastics.industrial equipment andmachinery thus impacting demand for engineering plastics in this space. liquidity crunch. Growth in the polycarbonate market is driven by expanding applications in motor vehicles. China and India will especially emerge over the global horizon to drive growth in the medium to long-term period. incomes levels. the automotive industry will witness a distinct re-focus on functional and performance materials like engineering plastics capable of reducing automakers’ carbon footprint. increase in foreign investments. rebuilding of consumer/business confidence. construction. reduced number of flight trips. recovery in GDP growth. Continued shifting of global production bases to low cost Asian countries. Fuelling this trend will be the tightening of emissions related regulations. will reemerge to reshape growth in the battered marketplace. as stated by GIA’s market research report. medical products. commercial aerospace has been especially roughed up with the general aviation industry witnessing significant erosions in business prospects. As a result. rise in airline bankruptcy. such as. employment rates. consumer spends. resurgence in fundamental growth fundamentals across all end-use markets. postponement of new aircraft deliveries. rebound in general production. In short. discretionary incomes. Europe and Asia-Pacific account for a lion’s share of the global Engineered Plastics market. cancellation of new aircraft orders. demand for engineered plastics in the aerospace industry thus took a hurting blow. and rise in the number of new manufacturing establishments will witness Asia-Pacific emerge into a prime driver of growth for engineered plastics. stands testimony to the potential laden opportunities in these markets. As economic health begins to align with environmental health. rise in capital investment levels in all end-use sectors. Focus on reducing vehicle weight for greater fuel efficiency and lesser environmental impact will spur demand for innovative lightweight. and aircraft parts and components like engines since commercial aircraft manufacturing is directly tied to the health of the airline industry.
automotive electrical instruments. but it fell to some extent in 2009 due to the global economic recession. the demand for engineering plastics in emerging markets and regions is booming. However. hereinto. signal lamps. and the like. polyamide (PA) engineering plastics and polyoxymethylene. PA engineering plastics: PA engineering plastics are extensively employed in automobile and transportation industries. and promisingly. optical disk drives. Royal DSM NV.0% during the analysis period. SABIC. Chi Mei Corporation. with the growth margin of over 10% in 2010. with the apparent consumption climbing to 1. Demand for Engineered Plastics in Automotive Applications market in Asia-Pacific is expected to surge at a CAGR of 5. as examples: Polycarbonate: Polycarbonate is widely applied in hollow plates. bearing.. the demand for engineering plasticsregistered 8. the CAGR of 14%. Eastman Chemical Company. The polycarbonate consumptionin Chinese market has increased rapidly in recent years. The consumption of engineering plastics is centralized in developed countries and regions which characterize comparatively high market saturation and therefore saw the limited market growth margin in 2010. Teijin Limited. Polycarbonate. in 2008.89 mln tons. with the typical products such as pump impeller. instrument panels. wherein. Evonik Degussa GmbH. and the market size of about RMB30 bln. Dow Chemical. and can be applied against relatively harsh physical and chemical environment. can endure the mechanical stress in a wider range of temperatures. fan blade. nearly the quintuple of 83. Production of polycarbonate in China develops slowly. etc.000 tons in 2005. and the manufacturers are mainly foreign-funded enterprises. valve seat. Toray Industries Inc. Bayer AG.2 kilotons in . DuPont. lower costs.in attempts to decrease weight.43 mln tons in 2015. bumpers. Polyplastics Co.50 mln tons. the demand for PA engineering plastics in China approached 410 kilotons. shells of electric tools. fueled by the recovering demand of automobile and electronic & electrical products in 2010.79 mln tons. the net import volume contributed more than 75% to the demand during 2005-2010. bushing. that in Chinese market approximated 2.20 mln tons or so in 2010 from 620. safe lampshades. In 2010. it will rise 30% from 2010 to 11. Engineering plastics refer to those materials that can be used as structural stuff. up 11% year-on-year. Major players in the global marketplace include BASF SE. close to that in 2008. and Wintech Polymer Ltd. LG Chem. the total capacity of TEIJIN and Bayer hold a proportion of 95%. are the Top 3 by demand. Ticona Engineering Polymers. As per Research and Markets. and obtain design flexibility in architecture. automotive instrument panels. the world’s demand for engineering plastics reached 8.
Apart from such foreign-funded enterprises as LANXESS. and China National BlueStar (Group) Co. Sustained growth in the industrial sector and the growing utilization of high-performance plastics in some applications are the major forces driving the Latin American engineering plastics market. in which a slowdown in motor vehicle and electronics output resulted in sluggish growth in engineering plastics demand. Notwithstanding the impact of the economic downturn.8% YoY.7 bln. gas explosion pipeline valve. Polyoxymethylene: Polyoxymethylene is mainly for high-precision gears. water taps. ABS demand. Of these. The demand for polyoxymethylene in China was roughly 330 kilotons (net import volume: 166 kilotons) in 2010. up 15. . lower costs and increased durability.2000. of which. the main end user for engineering plastics is the automotive industry.000 tons and ranks the first in Asia. and the production of Polyoxymethylene in China keeps rapid growth during the recent years. Advances will be driven by a continued trend toward the replacement of metal parts with high-performance plastic resins.4 bln plbs in 2012. and Henan Coal Chemical Industry Group (HNCC) held respectively 40 kilotons. US demand for engineering plastics will rise 3. Frost & Sullivan’s report provides the current status of the engineering plastics market in Latin America. the market is expected to become more competitive. Ltd. accounting for over three-quarters of total demand in 2012. instrument fine parts with complicated geometry. etc.” notes the analyst of this research service. polycarbonate and nylon will continue to be the three largest volume engineering plastics. on the other hand.. “Engineering thermoplastics are sold in much lower quantities and are thus more expensive per unit weight than commodity plastics. the Chinese PA engineering plastics manufacturers consist of Zhong Ping Energy Chemical Group whose annual capacity is 125.1% pa to 5. as per Freedonia. China’s YUNTIANHUA Group enjoyed 90 kilotons. which feature advantages such as reduced weight. valued at US$10. BASF and DSM. driven by opportunities in motor vehicles and medical products. opening up new avenues of opportunity for key participants and new entrants. In Latin America. “The Latin American market for engineering plastics is considered to be in an early mature stage since it already has many possibilities to grow through new applications. ABS.” Differentiating the product offering and providing optimized performance are the two major areas on which participants must lay particular emphasis. The capacity of domestic enterprises took 72% of the 250 kilotons in 2010. will grow at a pace well below the overall average. restrained by market maturity and competition from commodity resins such as polypropylene. the most rapid advances are expected for polycarbonate resins. the applications are more specific and niche products are constantly required by the end-users. Gains will represent a notable acceleration from performance during the 1997-2007 decade. followed by the electronics sector.
identify the needs of major consumers.770. End-users are applying engineering plastics instead of commodity plastics for products that require better materials performance. for instance. Participants must be attuned to the subtle nuances of the market.36% or Rs 360. As plastics have the advantage of being cost effective. The open interest of the contract stood at 2304 lots on NCDEX. During 2008. so as to not be so dependent on the automotive industry.5% in 2008 for Brazil. The contract for May delivery was trading at Rs 26. up by 1. heavily affecting the engineering plastics market.410. the supply remained tight in the spot markets on the same time supplies have been poor because of almost stagnant production in the last two-three years.25% or Rs 335.00. they facilitate cost savings in many applications. unleashing prospects for penetration in diverse markets.00.” notes the analyst of this research service. Latin America imports a sizeable portion of plastic resins and increasing prices encouraged substitution by commodity materials. and work toward finding newer.00.885. versatile. the focus on metal replacement is still a prominent factor influencing market dynamics.The automotive sector registered impressive growth rates in Latin America during ock 2008 – 14.220. more potent solutions to ensure business progression. technical developments and partnerships to develop a new application can take anywhere between six months to two years. representing 6% of the Brazilian GDP in 2008.00. The contract for June delivery was trading at Rs 27. and 8% in Argentina. which is priced lower than other engineering plastics and has enhanced properties for greater performance. Pepper futures have extended their gains on Wednesday with a good start. oil prices had climbed to US$150 per barrel. The open interest of the contract stood at 10939 lots. up by 1. cost reduction is at the crux of the short term strategy for the Latin American engineering plastic market participants. helping the prices move higher.00 from its previous closing of Rs 26. and lighter than competing materials. However. replacing polypropylene (PP). The automotive and electronics segments are constantly seeking new ways for product improvement. Commodity plastics have been replaced by ABS.” Innovative applications can expand the range of markets where engineering plastics are applied. “However. particularly automotive parts. Companies are aiming to reach new markets and applications in the medium and long term.s . Despite the fact that engineering plastics have extensively replaced metals in Latin America.00 from its previous closing of Rs 26.