APLA ’11: HDPE supply remains tight in Mexico

06 November 2011 20:03  [Source: ICIS news]

BUENOS AIRES (ICIS)--Mexico’s high density polyethylene (HDPE) supply remains tight, with lower production at one of the plants, sources close to the company said on Sunday on the sidelines of the 31st Latin American Petrochemical Association (APLA) annual meeting.

Recent programmed maintenance stoppages that lasted longer than initially planned have decimated stocks of HDPE in Mexico.

Lack of ethylene has also played a role in the shortages in recent weeks. Ethylene is tight because of diminished production of ethane.

In addition, Pemex has favoured production at the 300,000 tonne/year Morelos swing plant, which also produces linear low density PE (LLDPE), but this has reduced ethylene for the Asahi and Mitsui HDPE plants.

The 80,000 tonne/year Mitsui plant has one train down at present, the source said.

Supplies of low density PE (LDPE) has been steady in recent months, despite rotating maintenance outages at the three Cangrejera trains. Part of the production is being exported to regional destinations.

The 2011 APLA conference ends on Tuesday in Buenos Aires.

For more on PE visit ICIS chemical intelligence

By: George Martin
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