Mexico’s Pemex increases PE prices in June

04 June 2009 16:51  [Source: ICIS news]

HOUSTON (ICIS news)--Mexico’s sole polyethylene (PE) producer Pemex this week increased prices 5-10%, depending on grade, a company distributor said on Thursday.

Price increases from the local producer are seldom challenged in Mexico because those are usually the lowest prices in the region, even with the increase, a source said.

Pemex’s steepest increase was for high density PE (HDPE) material, which went up 10%. This material was in short supply.

Increases for different grades of low density PE (LDPE) varied from 5% to 7%, the distributor said. Linear low density PE material (LLDPE) prices went up by 6.5%.

Imported PE prices in Mexico were also higher, but the increases were confined within the range of 4-7% for the different grades.

Prior to the increase, the price of LDPE in Mexico was at $1,240-1,290/tonne (€880-916/tonne). HDPE prices were in the range of $1,135-1,185/tonne, according to global chemical market intelligence service ICIS pricing.

Imported polypropylene had the steepest increase at 14.17%, following June contract nominations for feedstock propylene heard last week in benchmark US markets at 9-13 cents/lb. Imported PP was offered in the range of $1,280-1,470/tonne.

Demand was recovering in Mexico after a lull caused by the swine flu outbreak.

$1 = €0.71

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By: George Martin
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