Mexico’s Pemex PE stock is nearly depleted

17 December 2008 23:27  [Source: ICIS news]

HOUSTON (ICIS news)--Polyethylene (PE) inventories for the local producer in Mexico are down to almost nothing due to shortages of feedstock ethylene, a Pemex Petroquimica source said on Wednesday.

The ethylene cracker at the Cangrejera facility was scheduled to return to normal production in the first week of December, but technical problems have prevented restart of the unit, the source said. It was not clear when the technical problems would be resolved.

However, the swing plant (HDPE/LLDPE) in Morelos was successfully restarted using ethylene from one line still working at the Cangrejera facility, and also by diverting ethylene that is normally consumed for production of other streams that, at this time, are not having much demand.

Two ethylene production lines are still down at the Cangrejera facility until the technical glitches are ironed out.

With currency volatility, local buyers have flocked to buy domestic PE material, but the supply is practically depleted, particularly for low density PE (LDPE), the source said.

Demand is not expected to improve during the rest of 2008. But at least Pemex expects to start the new year with some inventories accumulated after the restart of the swing plant.

No price changes were expected until January amid quiet markets.

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By: George Martin
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