05 July 2012 22:09 [Source: ICIS news]
HOUSTON (ICIS)--Mexico’s Pemex reduced prices for all grades of polyethylene (PE) effective 3 July, addressing lower import prices, soft demand and currency fluctuations, distribution sources said on Thursday.
The amount of the reductions varied for each grade. The price for all high density PE (HDPE) grades declined by 3%, while low density PE (LDPE) prices went down by 5.5%.
Linear low density PE (LLDPE) grades were the most affected with a 6% reduction for all grades despite low supplies caused by programmed maintenance at the Morelos swing plant, which is scheduled to restart in mid-July.
The reduction addresses domestic demand erosion and aggressive discounts from sellers of imported material.
Additionally, the recovery of the Mexican currency versus the US dollar is making imports more affordable, in detriment of domestic sales.
The US dollar is currently at Ps13.35, down from Ps14.02 a month ago.
Prior to this reduction, Mexico’s LDPE prices were in the range of $1,446-1,603/tonne (€1,157-1,282/tonne) FOT (free on truck); LLDPE butene prices were at $1,267-1,513/tonne FOT; and HDPE blow moulding prices at $1,304-1,491/tonne FOT, based on ICIS data.
($1 = €0.80)
($1 = Ps13.35)
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