01 February 2012 22:06 [Source: ICIS news]
HOUSTON (ICIS)--Mexico’s sole polypropylene (PP) producer Indelpro increased prices for all grades of PP by 22 cents/lb ($485/tonne, €369/tonne) effective 1 February, matching the high nominations heard for feedstock propylene contracts in the US Gulf, an Indelpro source said on Wednesday.
Although propylene contracts are not yet settled, Indelpro already has increased prices by the full amount.
However, a second nomination for propylene in the US Gulf has surfaced at plus 17 cents/lb, a level with better chances of endorsement by buyers.
Buyers in Mexico have not had enough time to react to the new prices, but past history suggests that demand will decline until propylene contract settlements are finalised.
The increase puts homopolymer prices in Mexico at 98 cents/lb, with copolymers slightly higher, sources said.
Prior to this announcement, the price of PP homopolymers in Mexico was in the range of $1,832-1,880/tonne FOT (free on truck), according to ICIS data.
($1 = €0.76)
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