Mexico’s Pemex increases September PE prices by up to 7.5%

13 September 2012 20:07  [Source: ICIS news]

HOUSTON (ICIS)--Mexico’s Pemex Petroquimica increased prices for all grades of polyethylene (PE) effective on 11 September, distributor sources said on Thursday.

Pemex increased the price of high density PE (HDPE) injection moulding by 7.5% but the increase was only 6% for HDPE blow moulding material.

The increase for linear low density PE (LLDPE) prices was 5.5%, while low density PE (LDPE) prices were raised by only 5%, the source said.

Domestic production of HDPE is currently reduced because of a programmed maintenance turnaround at the 100,000 tonne/year Asahi plant, which produces injection material, the grade that was increased the most.

The 80,000 tonne/year HDPE Mitsui plant is working normally at this time, producing blow moulding material.

Imported material also has become more expensive in Mexico, but the increases have been in the range of 2.26- 3.35%.  Imported PE material is usually more expensive than domestic material.

The increase surprised some buyers who expected steady prices for a while, considering that demand, although stronger than in August, has not lived up to expectations.

Prior to the increases, Mexico’s LDPE prices were in the range of $1,513-1,678/tonne (€1,180-1,309/tonne) FOT (free on truck), LLDPE butene prices were at $1,355-1,617/tonne FOT, and HDPE blow moulding prices at $1,440-1,651/tonne FOT, based on ICIS data.

Pemex is the only PE producer in Mexico. The Braskem-Idesa joint venture is scheduled to start PE production in the second half of 2015.

($1 = €0.78)

By: George Martin
+1 713 525 2653

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