26 October 2011 21:52 [Source: ICIS news]
HOUSTON (ICIS)--Mexico’s Pemex reduced the price of low density polyethylene (LDPE) effective 25 October to remain competitive with discounted imported resins arriving in Mexico, a distributor said on Wednesday.
LDPE was the only grade discounted this week. Linear low density PE (LLDPE) and High density PE (HDPE) grades were still in short supply.
Demand in Mexico is still soft in late October as buyers wait for prices to fall further.
Seasonally, buyers seek to reduce inventories at the end of the year to minimise the tax bite.
Prices at the US border are said to be declining, but sellers are slow to close deals at lower levels, a buyer said.
Buyers were told that imported LDPE material is likely to go down by 5 cents/lb, bringing the price of bulk material to about 65 cents/lb DAF (delivered at frontier) Laredo, Texas, for small-volume buyers. However, sellers have not acted quickly in granting the announced discounts, a buyer said.
This is the second price reduction in October. Pemex had reduced LDPE prices effective 11 October by as much as 5%.
Prior to the latest reduction, Pemex LDPE prices were in the range of $1,581-1,730/tonne (€1,138-1,246/tonne) FOT (free on truck), based on ICIS data.
$1 = €0.72
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