14 September 2012 21:05 [Source: ICIS news]
HOUSTON (ICIS)--Brazilian exports of polyethylene (PE) and polypropylene (PP) to Colombia have been drastically reduced in September, suggesting that Brazilian production has diminished or that export volumes have been re-directed.
The volumes destined for Colombia in September will not reach one-fourth of the usual monthly volume, sources in Colombia said.
The reasons offered for the decline ranged from a new emphasis on domestic Brazilian sales, to lower operating rates and/or maintenance turnarounds.
In Brazil, Braskem has been recovering market share lost to imports, seeking to improve profitability after several months of negative results.
Local observers said that Braskem has gained 13 points of market share since last year, corralling 83% of the total market.
The main contenders in Colombia are imports from Brazil and the US Gulf, but product from Korea and the Middle East is also available at similar levels.
There is more parity among the different grades of PE arriving to Colombia. Quotes of LLDPE butene and HDPE blow moulding are coming at levels slightly below those of LDPE, which is selling this month at about $1,600/tonne (€1,232/tonne) CFR Cartagena.
Demand remains steady in Colombia, as the economy grows at a 3.5-4.0% rate, but plastic resins are not growing as much, local sources said.
$1 = €0.77
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