15 June 2012 20:58 [Source: ICIS news]
HOUSTON (ICIS)--Mexico’s sole polypropylene (PP) producer, Indelpro, reduced the price of all grades by 15 cents/lb ($331/tonne, €261/tonne) this week, reflecting the June decline of feedstock propylene, a company source said on Friday.
US PP contracts fell by 15.5 cents/lb on 7 June, following a similar reduction for feedstock propylene contracts.
PP demand has been soft in Mexico since February because buyers rejected the large increases in feedstock costs and bought only small volumes, while waiting for prices to come down.
The current reduction puts Mexico homopolymer prices from the local producer in the range of 76-78 cents/lb, according to seller sources, with copolymers slightly higher.
However, sales of imported product in Mexico are already happening in the high 60s cents/lb, according to distributors.
Prior to the June reduction, the price of PP homopolymers in Mexico was in the range of $1,853-1933/tonne FOT (free on truck), according to ICIS data.
With the reduced values, sales are picking up because buyers are not certain about price direction for July.
($1 = €0.79)
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