Colombia increases LDPE prices by 7.1-7.5%

30 September 2008 22:57  [Source: ICIS news]

HOUSTON (ICIS news)--Colombia’s Ecopetrol increased the price of low density polyethylene (LDPE) by 7.1-7.5%, depending on delivery and packaging options, the producer said on Tuesday.

The increase, which was made effective on Tuesday, appeared to have little connection with slumping US Gulf polyethylene (PE) export prices, but the weekly adjustment also addresses currency fluctuations.

Sharp gains of the US dollar versus the Colombian currency prevailed in this week’s adjustment, a source said.

The price of bagged material was Colombian pesos (Ps) 4,751/kg free on truck (FOT), equivalent to $2,175/tonne (€1,501/tonne). Bulk material was slightly cheaper at Ps4,521/kg FOT ($2,0706/tonne).

The adjustment was significantly larger than usual. The typical weekly delta rarely exceeds 2%. The prices of other plastic resins in Colombia like polypropylene (PP) and polystyrene (PS) were also under revision to accommodate the volatility in currency markets, a trader said.

($1 = Ps2,167, $1 = €0.69)

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By: George Martin
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