Pemex PE production gains local market share

09 April 2008 23:09  [Source: ICIS news]

MEXICO CITY (ICIS news)--Production of polyethylene (PE) in the Morelos swing plant is receiving more acceptance in the domestic market, Pemex Petroquimica’s Commercial Manager Jorge A. Carrillo Careaga said on Wednesday at Mexico’s Plastimagen trade show.

As a result, Pemex will have smaller volumes to export, Carrillo Careaga said.

Despite the increased demand for Pemex products, the price of low density polyethylene (LDPE) was recently reduced by 3% in Mexico, matching an earlier 3% reduction on linear low density polyethylene (LLDPE) and high density polyethylene (HDPE) resins effective on 12 March.

The latest price reduction was done at a time when LDPE production in Mexico was stopped at the Escolin plant. Only LDPE production from the Cangrejera plant is currently available, Carrillo Careaga said.

The reduction was simply a marketing strategy to keep the competitiveness of Pemex product in Mexico as prices at the US border got increasingly more aggressive and with suppliers showing plenty of availability, Carrillo Careaga said.

For data on the Morelos facilities visit ICIS plants and projects

By: George Martin
+1 713 525 2653

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