Mexico’s Pemex lowers PE prices

24 March 2009 23:03  [Source: ICIS news]

HOUSTON (ICIS news)--Mexico’s Pemex lowered prices for all grades of polyethylene (PE), effective on 20 March, to compensate for currency fluctuations and softer demand, a Pemex distributor said on Tuesday.

Price cuts were 5-9%, depending on the grade. The steepest reduction was applied to high density PE (HDPE) for blow-moulding applications. All other HDPE grades saw a 5% price reduction.

Before the reduction, HDPE blow-moulding prices were at $1,160-1,210/tonne (€847-883/tonne), according to global chemical market intelligence service ICIS pricing.

The price of low density PE (LDPE) for film applications was reduced by 7% for most grades, but LDPE resins for injection and extrusion were reduced by 7.5%. Before the reduction, LDPE prices were at $1,255-1,305/tonne, according to ICIS pricing.

Most grades of linear low density PE (LLDPE) saw a 7% price reduction. Only one LLDPE grade for roto-moulding was reduced by 7.41%.

Prices of imported PE resins sold in Mexico did not change. A revaluation of the Mexican currency versus the US dollar in the past couple of weeks was giving an edge to imports, and this was said to be the main factor behind the price adjustment, the distributor said.

PE demand had weakened this month in Mexico, and some price indications for imported product at the border were also declining, following lower ethylene values in the US Gulf.

($1 = €0.73)

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By: George Martin
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