Colombia’s Ecopetrol hikes LDPE prices by 3.5%

28 February 2007 23:37  [Source: ICIS news]

HOUSTON (ICIS news)--Colombia’s polyethylene maker Ecopetrol has raised prices for low density polyethylene (LDPE) by 3.5% effective 27 February on the back of a small surge in US Gulf PE prices, a company source said on Wednesday.

 

The price for domestic delivered bagged LDPE material was set at Colombian pesos (Ps) 3,572/kg, equivalent to $1,559/tonne (€1,185/tonne).

 

Imported PE product from countries that have no special agreement with Colombia must pay a 15% tariff to enter the country.

 

Ecopetrol was applying only a 7% surcharge to its product, making its product a bargain, relative to imports from the US Gulf, the source said.

 

To alleviate supply shortages created by technical issues Ecopetrol’s plant experienced in the fourth quarter of 2006, the Colombian government approved a motion to discount the import tariff by 5% for five months.

 

It set the tariff at 10% for a maximum volume of 3,200 tonnes/month, or about 16,000 tonnes over five months, the source said.

 

The new rule was approved some time ago but it remained unclear on Wednesday if it has already taken effect.

 

Importers to Colombia are likely to rush to take advantage of the reduced tariffs.

 

This may lead to renewed congestion problems in the Cartagena port. The port experienced problems in December which have not yet been fully resolved, the source said.

 

($1 = Ps2,291; $1 = €0.76)

By: George Martin
+1 713 525 2653

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