03 March 2009 19:55 [Source: ICIS news]
HOUSTON (ICIS news)--The two polypropylene (PP) producers in Argentina increased prices by at least 5%, effective on 2 March, marking the first price increase after several months of price erosion, buyer sources said on Tuesday.
Domestic prices in Argentina had reached the import parity in February. In addition, feedstock prices were slowly creeping up in the US Gulf, the benchmark for the Americas, and were having an impact on production costs.
Before the March price hikes, raffia grade PP was selling in the range of $937-1,039/tonne (€750-831/tonne) DEL (delivered) while injection homopolymers were selling in at $1,039-1,152/tonne, according to global chemical market intelligence service ICIS pricing.
PP prices in Argentina have been reduced to less than half of the value recorded in August 2008, which was above $2,200/tonne for raffia and even higher for injection homopolymers.
Demand was normal for the season in Argentina, but some distributors were bracing for a decline in coming months, when the global recession is expected to have a more visible impact in Argentina’s economy.
The two main producers in Argentina are Petroquimica Cuyo and Petroquimica Ensenada (Petroken).
($1 = €0.80)
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