13 June 2012 18:33 [Source: ICIS news]
HOUSTON (ICIS)--Mexico’s Pemex reduced prices for all grades of polyethylene (PE) effective 12 June, to address declining prices of imported material and low demand for all grades, distribution sources said on Wednesday.
The amount of the reductions varied for each grade. The price of high density PE (HDPE) injection grade declined by 7%, while prices for HDPE blow moulding grade went down only by 3%.
Pemex reduced low density PE (LDPE) prices by 5%, while linear low density PE (LLDPE) grades were reduced by 6%.
The reduction addresses domestic demand erosion and lower import prices at the US border, coming down in recent weeks because of cheaper feedstock ethylene prices.
Prices of imported PE product sold in Mexico have also declined, and the reductions have been as low as nearly 6%, although values for some grades declined by nearly 12%.
A high value of the US dollar, currently at Ps13.97, has failed to support demand for locally-produced plastic resins.
Prior to this reduction, Mexico’s LDPE prices were in the range of $1,543-1,716/tonne (€1,234-1,373/tonne) FOT (free on truck), LLDPE butene prices were at $1,294-1,540/tonne FOT, and HDPE blow moulding prices at $1,294-1,473/tonne FOT, based on ICIS data.
$1 = €0.80 = Ps13.97
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