Mexico’s Pemex cuts 3% off some PE grades

12 March 2008 22:40  [Source: ICIS news]

HOUSTON (ICIS news)--Mexico’s Petroleos Mexicanos (Pemex) reduced prices for some grades of polyethylene (PE) by 3%, effective on 12 March, to better compete with cheaper imports, a distributor said on Wednesday.

Domestic prices of low density PE (LDPE) were unchanged in Mexico this week, but all other grades were reduced by 3% due to softer domestic demand and stronger competition from falling PE prices at the US border.

Prices for linear low density PE (LLDPE) and high density PE (HDPE) were slowly going down at the US border, putting pressure on domestic Mexican products.

Imported PE grades sold in Mexico through distributors also fell, with reductions averaging 2.5-3.5%, mostly on HDPE and LLDPE. Other suppliers of imported product, who did not lower prices this week, were expected to follow the trend or risk losing market share.

Before the price decline, HDPE blow moulding prices in Mexico were 76.66-78.93 cents/lb ($1,690-1,740/tonne), according to global chemical market intelligence service ICIS pricing. Prices for LLDPE were slightly lower.

For more on polyethylene visit ICIS chemical intelligence

By: George Martin
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