Argentina PE prices rise $100/tonne in May on higher feedstock

11 May 2011 16:51  [Source: ICIS news]

SAO PAULO (ICIS)--Dow Chemical, Argentina’s sole polyethylene (PE) producer, increased prices by $100/tonne (€69/tonne) in May for all grades on higher feedstock costs, a company source said Wednesday on the sidelines of the Brasilplast trade fair and conference.

The price increase was initially planned for April, but stringent price controls in Argentina designed to control inflation had derailed the initiative.

The May increase was justified by increased costs and has not faced government opposition, sources said.

The price of imported PE from Brazil was said to be going up by a similar amount.

With the increase, the price of LDPE was at $2,330-2,530/tonne DEL (delivered), while linear low density PE (LLDPE) butene was at $2,111-2,229/tonne DEL. The price of high density PE (HDPE) blow moulding rose to $1,991-2,180/tonne DEL, based on ICIS data.

Undisclosed problems in the LLDPE unit in Bahia Blanca could tighten the market, providing further support for the May price increase.

Brasilplast is a major fair for the plastics industry in South America, and is organised by Reed Exhibitions Alcantara Machado.

Brasilplast 2011 runs through Friday.

($1 = €0.69)

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For more about Dow Chemical go to ICIS company intelligence

By: George Martin
+1 713 525 2653

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