14 September 2012 18:06 [Source: ICIS news]
HOUSTON (ICIS)--Dow Chemical, the sole polyethylene (PE) producer in Argentina, is planning to increase PE prices for all grades by $50/tonne (€39/tonne) in the second half of September, and imports will follow suit, producer sources said on Friday.
This is the second increase this month, after a $100/tonne hike implemented on 1 September for direct customers. Distributors had received the $100/tonne hike on 15 August.
The measures find support in global scarcity of PE resins, which are depriving transformers of competitive alternatives.
Local production in Argentina has been affected by recent turnarounds for programmed maintenance at the Bahia Blanca plants.
Brazilian PE sellers also have pushed the $100/tonne price increase and will be seeking $50/tonne in the second half of September.
Non-Mercosur imports are subject to a 14% import fee, which reduces their competitiveness.
The import fee may go up to 20% in the Mercosur countries if the motion is approved by all members. This could happen as soon as 1 October, according to market sources.
Currently, low density PE (LDPE) prices in Argentina are in the range of $2,040-2,319/tonne DEL (delivered), linear low density (PE) butene prices at $1,954-2,276/tonne DEL, while high density PE (HDPE) prices are in the range of $1,932-2,254/tonne DEL, based on ICIS data.
($1 = €0.77)
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