August PP prices up over 6% in Argentina

07 August 2008 17:24  [Source: ICIS news]

HOUSTON (ICIS news)--The two polypropylene (PP) producers in Argentina increased prices in excess of 6% in August, despite growing signals of an impending change of direction in market prices, buyer sources said on Thursday.

This time the increases were not supported by higher raw material prices, but supply was tight in the region and there were no viable alternatives for buyers, they said.

Brazilian plastic resins enter Argentina free of import duties due to the Mercosur agreement, but prices in Brazil are much higher than in Argentina, posing no threat to domestic suppliers in the latter.

Materials from the US Gulf or Asia are penalised by 15% import tariffs that effectively close the door to products from those origins.

Before the August price hikes, raffia grade PP was selling in the range of $2,105-2,188/tonne DEL (€1,368-1,422/tonne) while injection homopolymers were selling in July at $2,237-2,253/tonne, according to global chemical market intelligence service ICIS pricing.

The two main producers in Argentina are Petroquimica Cuyo and Petroquimica Ensenada (Petroken).

($1 = €0.65)

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By: George Martin
+1 713 525 2653

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