09 September 2008 23:58 [Source: ICIS news]
HOUSTON (ICIS news)--Colombia’s Ecopetrol increased the price of low density polyethylene (LDPE) by 2.9%, effective on Tuesday, company sources said.
The move appeared to go against the trend in the US Gulf, but the weekly adjustment also addressed currency fluctuations amid sharp gains by the US dollar versus the Colombian currency. The currency component was the main factor in the adjustment, Ecopetrol said.
The price of bagged material was Colombian pesos (Ps) 4,458/kg ($2,159/tonne, €1,533/tonne) free on truck (FOT). Bulk material was slightly cheaper at Ps4,228/kg FOT.
Ecopetrol adjusts prices weekly to discourage imports. However, imports are the only source for other grades of PE, such as linear low density PE (LLDPE) and high density PE (HDPE).
Ecopetrol also buys plastic resins from Mexico, the US Gulf and Korea, which have become more competitive in recent weeks.
Domestic production was normal, and demand was still soft but improving, a source at Ecopetrol said.
($1 = Ps2,065 = €0.71)
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