APLA '08: Pemex PE sales rise on currency woes

17 November 2008 15:56  [Source: ICIS news]

RIO DE JANEIRO (ICIS news)--Mexico’s polyethylene (PE) producer Pemex has benefited from volatility in currency markets as domestic consumers ran away from dollar-denominated purchases, an official with Pemex’ trading arm PMI said on Monday.

Hurricanes Gustav and Ike reduced supply and delayed the price decline in the US Gulf and that provided for an extended transition to lower prices in Mexico, Fernando Luna said at 28th Latin American Petrochemical Annual Meeting (APLA).

Initially Mexico increased prices to compensate for currency fluctuations, but prices went down again when offers of PE material at the US border got more competitive.

“The hard part of lower prices was that the downturn was so sudden and so unexpected,” said Luna. “No-one has benefited from this downturn.”

Despite good demand for Pemex product, the company did not have enough material in stock to take full advantage of the situation.

The Cangrejera cracker and the Morelos linear low density PE (LLDPE), high desnity PE (HDPE) swing plant remained down for maintenance.

Supply was expected to remain very tight in Mexico at least until the end of this year.

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By: George Martin
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