11 October 2012 23:44 [Source: ICIS news]
HOUSTON (ICIS)--Chilean polypropylene (PP) producer Petroquim has dropped a price increase proposal for October in order to protect itself from cheaper imports, a company source said on Thursday.
The minimum price of raffia homopolymers for large-volume buyers in October was left steady at $1,580/tonne (€1,232/tonne) DEL (delivered), after initially rolling out a $40/tonne increase for the month.
The increase would have placed the local producer at a disadvantage with product from traders, Colombia and Brazil, which has been arriving in Chile at competitive levels.
The competition extends also to neighbouring countries like Peru and Ecuador, countries that buy mostly on price considerations.
Transformers buying from distributors may see prices $100-150/tonne higher than those of large-volume buyers.
PP demand in Chile is described as normal, but demand in Peru, booming until August, has declined considerably in September and October, transformers said.
($1 = €0.78)
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