Mexico’s Indelpro cuts PP prices by 1.5 cents/lb

15 October 2010 19:21  [Source: ICIS news]

HOUSTON (ICIS)--Mexico's sole polypropylene (PP) producer, Indelpro, reduced the price of all grades of PP by 1.5 cents/lb in line with a similar reduction in feedstock propylene (C3), a company source said on Friday.

With the reduction, domestic prices for homopolymers (raffia and injection grades) were in the range of 79-82 cents/lb ($1,742-1,808/tonne, €1,237-1,284/tonne) FOT (free on truck), with copolymers selling a few cents higher.

Initially, the plan for October was for a rollover, but conditions were slowly changing with cheaper C3.

Prices at the US border were also falling, but producers were not in a hurry to make huge concessions. Offers were in the low-to-mid 60’s, with some bids heard as low as 58-60 cents/lb FOB (free on board) Houston.

Flooding in southeast Mexico had not affected PP deliveries, because Indelpro's plant is further north in Altamira, and the route from Tampico to the central part of Mexico was in good condition, the source said.

Demand was softer in October in comparison with the two prior months. This was attributed to buyers adopting a wait-and-see attitude now that prices are falling.

($1 = €0.71)

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By: George Martin
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