Mexico’s HDPE plant turnaround proceeds on schedule

31 August 2012 17:28  [Source: ICIS news]

HOUSTON (ICIS)--Pemex Petroquimica has stopped the Asahi high density polyethylene (HDPE) for a month of programmed maintenance as scheduled, a Pemex source said on Friday.

The turnaround began on 25 August. Pemex built up inventories ahead of the turnaround on the 100,000 tonne/year HDPE injection plant, but supply of injection material is expected to be tight.

Pemex plans to restart the plant on 27 September, if maintenance operations proceed as scheduled.

Supply of linear low density polyethylene (LLDPE) will also be short, affected by an earlier maintenance stop and impaired by recent logistics difficulties related to railroad transportation.

Other polyethylene (PE) plants in Mexico are operating normally, including the 300,000 tonne/year Morelos swing plant HDPE/LLDPE and the Mitsui 80,000 tonne/year HDPE blow moulding plant.

Demand for plastic resins has been strong in August, absorbing a price increase that varied between 7–10%, depending on grade.

Import prices also rose this month and buyers have received letters announcing a 3-5 cent/lb increase for September.

Part of the increase in import prices could take hold in September, according to market sources. If this occurs, Pemex could also increase domestic prices.

By: George Martin
+1 713 525 2653

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