22 June 2011 16:50 [Source: ICIS news]
HOUSTON (ICIS)--Mexico’s Pemex reduced the price of some grades of polyethylene (PE) to remain competitive with available alternatives from the US and Asia, a company source said on Wednesday.
Pemex reduced low density polyethylene (LDPE) grades by 3% while linear low density polyethylene (LLDPE) grades for extrusion were reduced by 5%.
High density polyethylene (HDPE) prices were unchanged as its demand remained satisfactory. However, market conditions were still closely watched and further adjustments for this grade were still possible in the short term.
The reduction, the second price decline this month for PE resins, was effective as of 21 June. Prices had been reduced on 7 June by as much as 3.8%, but this did not affect LDPE grades.
Prior to the reduction, LDPE prices in the country were $1,894-2,061/tonne (€1,307-1,422/tonne) FOT (free on truck), while LLDPE was at $1,516-1,750/tonne FOT and HDPE blow moulding was at $1,416-1,601/tonne FOT, according to ICIS data.
PE prices have declined of late following lower crude oil prices and increased offers of Asian material at competitive prices.
Because of this downturn, buyers held purchases to a minimum.
Pemex is Mexico’s only domestic PE producer. Imports from the US Gulf routinely help to fill its supply gaps while imports from Asia arrive sporadically when arbitrage conditions allow.
($1 = €0.69)
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