Mexico’s PP prices rise on crude, feedstock

08 May 2008 23:33  [Source: ICIS news]

HOUSTON (ICIS news)--Mexico’s polypropylene (PP) producer Indelpro increased May prices for all grades by 3.5 cents/lb to restore margins in view of relentless increases in crude oil and basic chemical feedstocks, a company source said on Thursday.

With the increase, Mexico’s domestic prices were hovering around 81-82 cents/lb ($1,786-1,807/tonne) and higher for smaller volumes.

The price increases were supported by rising values of feedstock propylene in benchmark US markets and higher PP exports prices at Laredo, Texas, where the product is stored prior to sale and transportation into Mexico.

Initial US May chemical- (CGP) and polymer- (PGP) grade propylene contracts settled up by 4 cents/lb ($88/tonne).

The initial settlements put PGP contracts at 69.00 cents/lb and CGP prices at 67.50 cents/lb, both at record highs, according to global chemical market intelligence service ICIS pricing.

Polypropylene prices at Laredo were heard in the range of 75-77 cents/lb this week as a result of skyrocketing crude values. The June light sweet crude oil contract in the NYMEX settled Thursday at $123.69/bbl after reaching an intra-day high of $123.97/bbl.

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By: George Martin
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