Mexico’s Pemex increases Oct PE prices

17 October 2008 20:33  [Source: ICIS news]

HOUSTON (ICIS news)--Petroleos Mexicanos (Pemex) increased prices for all grades of polyethylene (PE) this week mostly to compensate for currency fluctuations, a Pemex distributor said on Friday.

Not long ago, the US dollar was hovering at Mexican Pesos (Ps) 10.30 per dollar, while on Friday, one dollar was equivalent to almost Ps13.00.

The price of low density PE (LDPE) for film applications was up by 6.8%, and a similar percentage was applied to linear low density PE (LLDPE) prices. The price of high density PE (HDPE) for blow moulding and injection applications was increased by 4.8%, the source said.

Before the increases, the price of LDPE in Mexico averaged about $1,900-2,000/tonne(€1,406-1,480/tonne) DEL (delivered), according to global chemical market intelligence service ICIS pricing.

Prices for imported plastic resins sold in Mexico by agents and distributors had dropped in October as much as 5.8% for some grades, but remained more expensive than domestic product.

A distributor said he would have liked to see a larger increment from Pemex, considering that supply is very tight in the country because several PE plants are currently down. Asked what grades were tight, he replied “all of them.”

In addition, demand for imports declined as buyers in Mexico sought to avoid commitments in US dollars due to the high volatility.

Pemex sources were not immediately available for comments on the status of the plants.

 $1 = €0.74

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By: George Martin
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