Chile PE prices to rise $100/tonne in May on higher feedstock costs

19 April 2011 22:02  [Source: ICIS news]

HOUSTON (ICIS)--The local polyethylene (PE) producer in Chile, Dow Chemical, announced a $100/tonne (€70/tonne) price increase, effective on 1 May, buyers said on Tuesday.

Dow's measure was based on rising costs of feedstock ethylene in international markets and also on the general lack of alternatives for Chile.

Before the proposed May increase, low density PE (LDPE) prices in Chile were in the range of $1,965-2,117/tonne DEL (delivered) based on ICIS. Prices for small-volume buyers were likely to be even higher.

Product from the US Gulf would likely arrive at $1,960-1,980/tonne CFR (cost and freight) Chile main port, and product from Mexico was slightly cheaper at about $1,950/tonne CFR, buyers said.

Product from Asia was also offered, but not for less than $2,000/tonne CFR, a buyer said.

It was not clear if the proposed $100/tonne price increase would take hold partially or in full. Market players said the behaviour of ethylene prices in the coming week would make or break this initiative.

($1 = €0.70)

For more on polyethylene visit ICIS chemical intelligence

By: George Martin
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