Chile PP prices pushed lower by cheaper imports

25 May 2012 21:55  [Source: ICIS news]

HOUSTON (ICIS)--A proliferation of polypropylene (PP) import offers from a number of origins is pushing domestic prices down in Chile, seller sources said on Friday.

Early in May, PP prices were at $1,770/tonne (€1,416/tonne) DEL (delivered), for raffia homopolymer, large-volume buyer.

Competition from imports forced a $70/tonne reduction in the second half of the month, bringing PP prices down to $1,700/tonne.

By 1 June, domestic PP prices in Chile will be at $1,620/tonne DEL, and perhaps lower in the second half of June.

The reason for the decline is that prices from Europe are already at $1,520/tonne CFR (cost and freight), while prices for Iranian product are as low as $1,430/tonne CFR Chile, but receiving very little buying interest.

Product from India was said to be arriving at $1,470/tonne CFR Chile for August delivery, while product from South Korea could land at $1,460/tonne CFR.

Product from neighbouring Propilco of Colombia was said to be arriving at Pacific coast destinations at competitive levels, too.

Production of PP resins has stabilised in Chile, although the local production of ethylene and propylene remains at diminished levels, sources said.

($1 = €0.80)

By: George Martin
+1 713 525 2653

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