Argentina PP prices keep climbing despite C3 decline

08 June 2012 17:36  [Source: ICIS news]

HOUSTON (ICIS)--Argentina polypropylene (PP) prices continued to climb in June with a modest jump on homopolymers but a more substantial increase in copolymers, despite a large decline in feedstock propylene, buyer sources said on Friday.

US PP contract prices fell by 15.5 cents/lb ($342/tonne, €270/tonne) in June, following an identical drop in feedstock propylene.

In Argentina, the increase for PP homopolymers was said to be around 2.5% over May prices, while copolymers went up by 4.30%, buyers said.

There is already scarcity of copolymers in June, derived from reductions of natural gas supply to industrial users as frequently happens in the winter.

Dow Chemical, the local ethylene producer, has already imported ethylene in May and additional shipments may be necessary if shortages of natural gas continue.

The increase for random copolymers was described at about 3.5% over May.

Demand from the automotive sector is slightly down, and declines can be seen in popular items such as those found in supermarket chains, transformers said.

Prior to the June increase, PP homopolymer raffia prices in Argentina were in the range of $2,036-2,103/tonne DEL (delivered), based on ICIS data.

Homopolymer injection material was at $2,114-2,147/tonne DEL, based on ICIS data. Prices for small-volume buyers could be higher.

ICIS does not assess copolymer prices in Argentina.

$1 = €0.79

By: George Martin
+1 713 525 2653

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