17 May 2012 21:58 [Source: ICIS news]
HOUSTON (ICIS)--Polyethylene (PE) supply in Mexico returned to normal in May with the end of a maintenance procedure at Pemex's low density PE (LDPE) Cangrejera facility, a company source said on Thursday.
One of three LDPE production trains at the Cangrejera facility stopped on 16 April, and returned to operations this week. Each train at Cangrejera has a nominal capacity of 100,000 tonnes/year.
However, demand for all plastic resins remains slow in Mexico, a fact that minimised the impact of the maintenance turnaround at Cangrejera.
April was a slow month for sales and May has not shown much improvement, sources said, particularly because buyers expect a decline of PE prices compatible with the ethylene price reductions seen in recent weeks.
Ethylene spot prices have declined nearly 15 cents/lb in the last 30 days. Producers of plastic resins have been reluctant to grant proportional discounts.
Prices in Mexico have been affected also by a sudden increase in the value of the US dollar, after a long period of stability at levels around Ps12.50/$1.
Currently, the dollar commands a value of Ps13.79, making imported resins more expensive for local buyers.
($1 = €0.79)
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