10 August 2012 17:42 [Source: ICIS news]
HOUSTON (ICIS)--Mexico’s Pemex Petroquimica increased prices for all grades of polyethylene (PE) effective on 7 August, a company source said on Friday.
Pemex increased the prices of high density PE (HDPE) grades and linear low density PE (LLDPE) by 10%, while low density PE (LDPE) prices were raised by only 7%, the source said.
The measure addresses a perceived shortage of imported material and higher import prices at the US border.
As expected, the increase met some resistance from buyers, but there has not been any negative impact on overall demand, perhaps because the availability of PE material remains low for all grades.
There have been no currency concerns lately as the Mexican currency has slowly gained some ground relative to the US dollar.
Demand was described as satisfactory in August, although nothing extraordinary, sources said.
Prior to this increase, Mexico’s LDPE prices were in the range of $1,356-1,504/tonne (€1,098-1,218/tonne) FOT (free on truck), LLDPE butene prices were at $1,183-1,412/tonne FOT, and HDPE blow moulding prices at $1,257-1,441/tonne FOT, based on ICIS data.
($1 = €0.81)
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