26 January 2012 00:36 [Source: ICIS news]
HOUSTON (ICIS)--Polyethylene (PE) price increases pushed by producers and importers during January are taking hold on tight supply for some grades, distributor sources said on Wednesday.
Buyers have reacted to the scarcity of product with steady purchases, knowing that there are no price reductions in the horizon, a distributor said.
Local production of low density PE (LDPE) is limited to 45,000 tonnes/year, but consumption of PE in Chile amounts to about 145,000 tonnes/year. The shortages are covered with imports.
A fire occured recently at Dow Chemical's Talcahuano plant, adding to supply concerns for February. Dow was not immediately available for comments.
Increases of about $100/tonne (€77/tonne) took hold without a fight during January, but those prices are only valid until the end of January.
This suggests that prices could go up again in February, although this is yet to be seen, the source said.
Domestic LDPE prices in Chile are seen in the range of $1,750-1,850/tonne DEL (delivered), the distributor said.
Offers of Asian material have also declined, particularly for linear low density PE (LLDPE) and high density PE (HDPE) film.
Mexico is not showing any material for sales in Chile. Dow Chemical and Braskem are the main suppliers in Chile.
$1 = €0.77
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