Mexico’s PP demand inching up in January

23 January 2009 21:15  [Source: ICIS news]

HOUSTON (ICIS news)--Polypropylene (PP) demand started to recover in Mexico with January sales improving over December figures, a source with local producer Indelpro said on Friday.

It was not clear if the improved demand in January was simply pre-buying ahead of higher prices in February or a legitimate revival of activities by transformers.

The price increase was a reaction to rising raw materials prices in benchmark US Gulf markets, the producer said.

The increase was announced a week ago and implementation was taking place this week with several sales at the new levels, the producer said. Domestic prices in Mexico were in a range of 45-47 cents/lb free on truck (FOT) ($992-1,036/tonne, €764-798/tonne).

Production at Indelpro’s Altamira site was estimated to be at about 70-75% capacity, with one of two production lines running at full capacity and the other one working for only 20 days of the month to prevent oversupply.

($1 = €0.77)

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By: George Martin
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