Mexico’s Pemex increases April PE prices on higher costs
06 April 2011 21:45 [Source: ICIS news]
HOUSTON (ICIS)--?xml:namespace>Mexico’s Pemex Petroquímica increased prices for all grades of polyethylene (PE) effective 5 April, seeking to offset higher feedstock costs, a company source said on Wednesday.
Pemex increased the price of high-density PE (HDPE) by 4%, while linear low-density PE ((LLDPE) and low-density PE (LDPE) prices went up by 3.5%.
The measure was applied also to match higher prices sought by distributors of imported product, who are seeking to increase prices by 2-6 cents/lb ($44-132/tonne, €31-92/tonne).
The Pemex increase is equivalent to 2.5-3.0 cents/lb. Although US producers and distributors selling in Mexico are seeking up to 6 cents/lb, it was likely that competition to move volumes would somehow erode prices a bit, sources said.
Prior to this increase, LDPE prices in Mexico were at $1,828-1,988/tonne FOT (free on truck), while LLDPE butene prices were at $1,479-1,664/tonne FOT, based on ICIS data. HDPE blow-moulding prices were in the range of $1,364-1,482/tonne FOT.
Supply was normal in Mexico, with good availability of most grades of PE.
$1 = €0.70
For more on polyethylene visit ICIS chemical intelligence By: George Martin+1 713 525 2653
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