14 August 2012 23:19 [Source: ICIS news]
HOUSTON (ICIS)--Brazilian polyethylene (PE) prices are poised to rise again in the next few weeks as the local producer and the main importer have announced additional increases, producer sources said on Tuesday.
Braskem increased August PE prices by R150/tonne ($74/tonne, €60/tonne) from 1 August. That increase brought prices back up to what they were before a decrease in July.
Citing international prices, Braskem notified customers of an additional 8% increase that was effective on Monday.
Dow Chemical, the largest PE importer, has also announced another increase in August. Dow increased prices by R300/tonne on 1 August, and notified customers that an additional R150/tonne increase wouldbe applied effective on 1 September.
The initial August increases have been absorbed by the market, but it remains to be seen whether the second increase would take hold smoothly.
The combined increases sought by Dow amount to R450/tonne, about twice more than the PE increases under implementation in international markets.
Currently, low density PE (LDPE) prices in Brazil are assessed at $2,355-2,504/tonne FOT (free on truck), linear low density PE (LLDPE) butene prices at $2,231-2,355/tonne FOT, and high density PE (HDPE) blow moulding prices at $2,256-2430/tonne FOT, according to ICIS.
Prices in Brazil include the Pis/Cofins tax, which add about 10% to the price.
($1 = €0.81) ($1 = R2.03)
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