Argentina Feb PP prices fall slightly despite US propylene jump

09 February 2012 21:32  [Source: ICIS news]

HOUSTON (ICIS)--February polypropylene (PP) prices declined slightly in Argentina despite a sharp increase in feedstock propylene prices in benchmark US Gulf markets, buyer sources said on Thursday.

Propylene for February settled in US markets at an increase of 16.5 cents/lb ($364/tonne, €273/tonne). Producers in the northern hemisphere are seeking a proportional increase for PP prices.

Frequently, producers in South America reflect the changes in US feedstock prices 30 days later.

The price of injection homopolymers in Argentina fell by nearly 1%. Block copolymers also declined, but random copolymer material was unchanged, a buyer said.

Injection homopolymers are now at Argentina pesos (Ps) 9.05/kg ($2.09/kg) on average, while block copolymers sell around Ps9.70/kg, buyers said. The price of random copolymers was unchanged at Ps10.44/kg.

Market participants did not discard the possibility that the February price reduction was forced upon producers by the government, which from time to time imposes price controls to keep inflation down.

($1 = €0.75)
($1 = Ps4.34)

By: George Martin
+1 713 525 2653

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