Brazilian PE sellers to seek price hikes for May

27 April 2012 23:26  [Source: ICIS news]

HOUSTON (ICIS)--Brazilian polyethylene (PE) sellers will seek additional price increases in May to restore margins affected by high raw material costs, sources said on Friday.

Braskem, the sole local producer, will pursue a 7% increase for all grades of PE, a company source said.

Dow Chemical, now a PE importer in Brazil, will seek a Brazilian reais (R) 250 ($133/tonne, €101/tonne) price increase, according to company sources.

The measures come on the heels of previous increases in March and April. The latter was for R200-250/tonne, depending on seller.

The local producer claims that margins were affected by crude oil prices persistently hovering above $100/bbl, high ethylene prices and currency fluctuations.

A recent decline of the local currency versus the US dollar has put renewed pressure on margins, prompting suppliers to seek additional price increases.

PE prices in Brazil were in the range of $2,483-2,644/tonne FOT (free on truck) for low density PE (LDPE), while linear low density PE (LLDPE) is at $2,377-2,484/tonne FOT.

High density PE (HDPE) blow moulding prices were in the range of $2,403-2,564/tonne FOT.

($1 = €0.76) ($1 = R1.89)

By: George Martin
+1 713 525 2653

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