11 September 2008 23:23 [Source: ICIS news]
HOUSTON (ICIS news)--Mexican producer Petroleos Mexicanos (Pemex) lowered prices for all grades of polyethylene (PE) this week by a combined average of about 6.5%, effective on Thursday, a company distributor said.
The move was expected by most market participants because prices for imported plastic resins at the US border were talked at substantially lower levels.
The price of low density PE (LDPE) for film applications was discounted by 7%, a distributor said. The price of high density PE (HDPE) was down by 6% for injection applications and by 4% for blow-moulding applications.
Before the reductions, the price of LDPE in Mexico averaged about $2,050-2,100/tonne (€1,456-1,491/tonne) DEL (delivered), according to global chemical market intelligence service ICIS pricing.
The price of linear low density PE (LLDPE) was reduced by 6.5%. The discounts were implemented to shore up sagging demand and to make the market more competitive with imported material entering without duty tariffs from the US.
Prices for imported plastic resins sold in Mexico by agents and distributors also dropped substantially by about 8-10%. By comparison, polypropylene (PP) prices were reduced by nearly 16%.
($1 = €0.71)
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