29 October 2012 21:14 [Source: ICIS news]
HOUSTON (ICIS)--Dow Chemical is seeking to increase November polyethylene (PE) prices in Brazil by reais (R) 150/tonne ($74/tonne, €57/tonne), the company said on Monday in a letter to customers.
The increase, effective on 1 November, is in addition to a R200/tonne price increase pushed in October for all grades of PE.
The letter did not justify the measure.
Production of high density PE (HDPE) grades has been affected as of late because of reduced ethylene supplies from a refinery near Rio de Janeiro. That refinery feeds a local swing PE plant.
Dow’s own inventories have been reduced by unexpected events in some of its production sites.
It is still unclear whether Braskem, the sole PE producer in Brazil, will seek additional price increases in November, but if it does, there will be less risk of market share losses.
Current prices in Brazil are $2,566-2,665/tonne for low density PE (LDPE), $2,443-2,541/tonne for linear low density PE (LLDPE) and at $2,467-2,615/tonne for HDPE, according to ICIS data.
Brazilian domestic prices include taxes, which add nearly 10% to the price.
($1 = €0.77)
($1 = R2.03)
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