05 August 2010 19:49 [Source: ICIS news]
HOUSTON (ICIS)--Pemex Petroquimica, Mexico’s state petrochemical company, slightly increased prices for some grades of polyethylene (PE), effective on 3 August, a company source said on Thursday.
Low density PE (LDPE) rose by 3%, and linear low density PE (LLDPE) for extrusion and rotomoulding rose by 1%.
Tight supply justified the increase for LDPE, while the LLDPE hike was geared toward creating a premium for special grades such as hexanes, the source said.
Prior to the August increase, LDPE in Mexico was $1,720-1,852/tonne (€1,307-1,408/tonne) FOT (free on truck), based on ICIS data. LLDPE is not assessed by ICIS.
All other grades were unchanged. Imported resins kept prices steady in August after having a substantial increase in July, when supply lines from Laredo were disrupted by rains from tropical weather.
Rail and truck shipments have resumed, but buyers are only receiving the material that was delayed at the border. It could take two more weeks for shipments to return to normal, the source said.
PE demand has been steady in Mexico. Fears of new weather-related disruptions were forcing buyers to pad emergency inventories.
Only one high density PE (HDPE) production train was undergoing maintenance in Mexico, but all requirements were being supplied from previously built-up inventories, the source said. LDPE production recently affected by maintenance stops was back to normal.
($1 = €0.76)
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