08 November 2012 21:41 [Source: ICIS news]
HOUSTON (ICIS)--A steady flow of imported product towards the Pacific coast of Latin America is keeping polypropylene (PP) prices steady in Chile, producer sources said on Thursday.
Petroquim, Chile’s sole PP producer, is maintaining prices steady in November, seeking to fend off competition from imports in the region and in its own domestic market.
PP homopolymer prices in Chile remain at about $1,580/tonne (€1,232/tonne) for large-volume buyers, and prices are even lower for exports, to better compete with other regional producers, such as Braskem and Propilco.
Traders also are involved in the competition with very aggressive pricing. Asian product offers have been heard as low as $1,390/tonne CFR (cost & freight) west coast ports for December delivery.
The low prices mask the fact that crude oil values are still at lofty levels, increasing costs for PP producers.
US Gulf nominations for feedstock propylene November contracts have been heard at increases of 5-7 cents/lb, but no settlement has been achieved, so far.
Local production in Chile remains affected by low supply of propylene and ethylene for copolymers, but the volumes received appear to be stable.
Demand in Chile and nearby countries is seen as steady for all grades.
($1 = €0.78)
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