06 February 2012 20:54 [Source: ICIS news]
HOUSTON (ICIS)--Colombia producer Ecopetrol reduced the price of low density PE (LDPE) by 5.6% effective on 1 February, local sources said on Monday.
Ecopetrol, the sole producer of PE in Colombia, only makes LDPE in its plant at Barrancabermeja and adjust its price every month, following international pricing trends and currency fluctuations.
The February adjustment is the third consecutive price reduction in the last three months.
With prices rising in the US Gulf, the only explanation for the February price decline could be a recovery of the local currency versus the dollar, and/or increased competition from imports.
When the year started, one dollar was at Colombian pesos (Ps) 1,940. This compares with current value around Ps1,783.
Additionally, Ecopetrol plans to conduct maintainance work at the Barrancabermeja plant to take place in March.
Ecopetrol routinely imports PE products to complement local production.
With the latest reduction, bulk material is listed at the Ecopetrol website at about Ps3,300/tonne, ($1848/tonne, €1,404/tonne) but large volume buyers have substantial discounts, the source said.
($1 = €0.76) ($1 = Ps1,783)
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