05 January 2009 17:50 [Source: ICIS news]
HOUSTON (ICIS news)--Brazil’s Braskem will continue lowering polyethylene (PE) prices in January to gradually close the gap between Brazilian and international prices, the company’s PE commercial manager said on Monday.
The adjustment will lower prices by Brazilian reais (R)150/tonne ($65/tonne, €47/tonne) in January for all grades of PE. It was not clear if the price cuts would meet market expectations, considering that international prices are still much lower.
With the January reduction, Braskem’s minimum price of low density PE (LDPE) in Brazil will be set at R4,150/tonne. This contrasts sharply with export prices in the US Gulf at levels averaging $771/tonne at the end of December, according to global chemical market intelligence service ICIS pricing.
Although Brazilian companies do not need to set prices at US Gulf levels due to protective tariffs that add about 20% to imports, the current prices in Brazil remain well above import parity.
($1 = R2.32 = €0.72)
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