07 November 2008 16:13 [Source: ICIS news]
HOUSTON (ICIS news)--Chilean polypropylene (PP) producer Petroquim reduced November prices for all grades to compete with alternatives from Asia and the US Gulf, a company manager said on Friday.
November prices were hovering at about $1,450/tonne (€1,146/tonne) DEL (delivered), down $150/tonne from October levels, but they would likely be reduced an extra $100/tonne in the coming days and perhaps again in the third week of November, said Alfonso Silva, Petroquim’s commercial manager.
“There is really no set price, you negotiate and close deals order by order,” Silva said.
Although offers from Korea were heard everywhere, not much imported product had arrived in Chile. Buyers frowned upon acquiring dollar-denominated debt and declined to take risks with long delivery times due to the current price volatility.
Distributors with large, high-priced inventories were said to have absorbed substantial losses.
Prices in Ecuador and Peru were heard at even lower levels. Korean offers of raffia and injection homopolymers were below $1,000/tonne CFR (cost and freight). Copolymers from Korea have arrived at $1,100/tonne, pushing down regional prices.
Demand has disappeared. September sales were a disaster, with only 18% of proposed sales actually materialising, Silva said.
($1 = €0.79)For more on polypropylene visit ICIS chemical intelligence
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