24 July 2012 18:59 [Source: ICIS news]
HOUSTON (ICIS)--Dow Chemical is seeking to increase PE prices for all grades in Brazil and other Latin American countries in August, as international prices rebound after declining in recent weeks, a company source said on Tuesday.
PE prices have declined worldwide in recent weeks, but the reductions in Brazil (about $75/tonne, €62/tonne) have not been as significant as in other countries.
Dow Chemical is seeking a R300/tonne (147/tonne) price increase for Brazilian customers starting on 15 August.
Braskem, the sole producer in Brazil, has not announced its intentions for August, but it is largely understood that its decision could derail or further support Dow’s increase.
Dow Chemical has also announced a minimum price increase of $100/tonne for all domestic PE sales in Bolivia, Chile, Paraguay, Peru and Uruguay for 1 August implementation.
Delivered prices to those countries have increased about $100/tonne in recent days.
Buyers have yet to react to these announcements but, in many cases, they will not have better alternatives, if any at all.
Current LDPE prices in Brazil are still at $2,275-2,423/tonne FOT (free on truck) with Pis/Cofins tax, which adds roughly 10% on average.
This contrasts sharply with prices in Mexico, Colombia or Chile that average about $1,500-1,600/tonne, FOT.
($1 = €0.82) ($1 = R2.04)
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