09 January 2012 22:04 [Source: ICIS news]
HOUSTON (ICIS)--Brazil’s local polyethylene (PE) producer Braskem is seeking to increase the price of two grades of PE in January by Brazilian reais (R) 50/tonne ($27/tonne, €21/tonne), local buyers said on Monday.
The prices of linear low density PE (LLDPE) and high density PE (HDPE) will be affected by the measure. Low density PE (LDPE) prices will remain at December levels, a company source said.
Braskem says that demand has picked up in January because buyers have not purchased much during December, waiting for lower prices.
However, the latest surge in energy prices is making feedstock ethylene more expensive, and this could result in higher PE prices.
In benchmark US markets, PE producers continue to push a 6-cent/lb increase for January.
The increase in Brazil is small enough to anticipate a smooth implementation during January in view of improved summer demand.
The value of the dollar has stabilised around R1.84 after three months of volatility.
With the increase, LLDPE prices were assessed at R4,100-4,300/tonne FOT (free on truck), while HDPE prices are about R100 higher, based on ICIS data.
($1 = €0.79)
($1 = R1.85)
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