Brazil, Argentina PE producers seek September increases
03 September 2010 22:15 [Source: ICIS news]
HOUSTON (ICIS)--Producers in Brazil and Argentina were seeking increases for all grades of polyethylene (PE) in September to offset rising feedstock costs, company sources said on Friday.
Brazil’s Braskem was targeting an increase of Brazilian reais (R) 300/tonne ($173/tonne, €135/tonne) for low density PE (LDPE), and R150/tonne for high density PE (HDPE) and linear low density PE (LLDPE).
In Argentina, Dow Chemical was seeking $100/tonne for LDPE and about $50/tonne for other grades.
Demand was strong in Brazil and stable in Argentina at reasonable levels, according to sources in those countries.
With the September increase, LDPE prices in Argentina would be $2,060-2,200/tonne DEL (delivered) while LLDPE butene prices would be $1,830-1,900/tonne, based on ICIS data.
September HDPE blow moulding prices were $1,700-1,850/tonne.
In Brazil, early September LDPE prices were $2,326-2,442/tonne FOT (free on truck). LLDPE was at $2,151-2,267/tonne FOT and HDPE blow moulding was at $2,163-2,297/tonne FOT. All prices include the PIS/Cofins taxes that are about 9.5% on average.
It was not clear if the new prices would find buyer support, but there were few alternative sources, in particular for LDPE.
Traders said there were small volumes in the US Gulf for export, and prices were high as a result.
South America imports would likely be sourced from the Middle East or Asia at about $1,800/tonne CFR (cost and freight).
($1 = €0.78)
($1 = R1.73)
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By: George Martin
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