30 November 2011 17:46 [Source: ICIS news]
HOUSTON (ICIS)--Pemex Petroquimica, Mexico’s sole polyethylene (PE) producer, plans to keep prices stable in December despite increased currency volatility and potential increases from importers of US product, Pemex polymers commercial manager Alex Ramirez said on Wednesday.
A recent surge in the value of the US dollar has given transformers new motivation to buy domestic product, which sells in the local currency.
Domestic PE supply has stabilised after a series of delays in the restart of some plants after their programmed maintenance, Ramirez said.
Shortages of ethylene also had a role in diminished production of high density polyethylene (HDPE), but this situation has been corrected, the source said.
Linear low density PE (LLDPE) is the grade showing the most scarcity, at about 10% below normal stocks.
Although there is market talk pointing to price increases for PE imports, there is no clear market perspective for December, the source said.
Demand is decent, but not very strong, and December is a short month for business because of the year-end holidays.
The Mexican economy appears to be growing and margins are decent with the current price levels, Ramirez said.
Domestic prices in Mexico are in the range of $1,465-1,604/tonne (€1,099-1,203/tonne) FOT (free on truck) for low density PE (LDPE), while LLDPE prices are at $1,213-1,410/tonne FOT and HDPE prices are at $1,206-1,365/tonne FOT, based on ICIS data.
($1 = €0.75)
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