24 February 2012 17:01 [Source: ICIS news]
HOUSTON (ICIS)--Mexico’s Pemex increased prices for all grades of polyethylene (PE) by 4-6%, effective on 22 February, to bring prices on par with changing market conditions, a company source said on Friday.
The increase is in response to changing overall market conditions, rather than supply availability for any particular grade, the source said.
However, a large distributor of domestic and imported product was listing a slightly lower price increase for domestic product in its website, perhaps absorbing some of the Pemex increase.
According to the distributor website, low density PE (LDPE) and linear low density PE (LLDPE) prices showed and increase of 3.7% while prices for high density PE (HDPE) for blow moulding applications were up by 2.3%.
Only one grade of HDPE for injection applications was increased by 3.7%, according to the distributor.
A transformer reported increases compatible with the distributor listings.
Prices for imported material have not changed this week, but notification of hikes amounting to 6-7 cents/lb have already been sent to customers, effective on 1 March, buyers said.
This was the second price increase for PE material implemented by the local producer this month. On 1 February, Pemex had increased PE prices by an average of 3.5%.
Prior to the latest increase, Mexico’s LDPE prices were in the range of $1,720-1,892/tonne (€1,290-1,419/tonne) FOT (free on truck), LLDPE prices at $1,431-1,658/tonne FOT, and HDPE blow moulding prices at $1,424-1,611/tonne FOT, based on ICIS data.
LDPE remains tight in Mexico, with inventories recovering after a series of maintenance procedures at the Cangrejera facility earlier in the month.
HDPE supply is seen as the tightest in Mexico. The local supplier has only a small market share of that grade. Imported product is filling the gaps.
All plants are currently working at normal operating rates, but the Morelos swing plant (HDPE/LLDPE) has operated intermittently this week, the Pemex source said.
($1 = €0.75)
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