Mexico’s Pemex lowers June PE prices by up to 3.8%

09 June 2011 18:45  [Source: ICIS news]

HOUSTON (ICIS)--Mexico’s Pemex lowered prices for some grades of polyethylene (PE), effective on 7 June, to improve competitiveness with products from the US and Asia, a company source said on Thursday.

Linear low density PE (LLDPE) butene was reduced by 2.5%, while high density PE (HDPE) for injection and blow moulding was reduced by 3.8%, the source said.

On the same date, the price of butadiene (BD) was also reduced by 3%, the Pemex source said.

PE market sentiment has been pessimistic for weeks. A large differential between US Gulf and Asia prices was increasing the likelihood of Asian shipments into Mexico and other destinations along the Pacific coast.

Prior to this week’s decline, HDPE blow moulding prices were at $1,504–1,636/tonne (€1,038–1,129/tonne) FOT (free on truck). LLDPE butene was at $1,587–1,789/tonne, as assessed by ICIS.

The June reduction follows a 5–7% price decline for all grades of PE implemented on 25 May.

Pemex is the only domestic PE producer in Mexico.

($1 = €0.69)

For more on PE visit ICIS chemical intelligence

By: George Martin
+1 713 525 2653

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