16 November 2012 22:25 [Source: ICIS news]
HOUSTON (ICIS)--Dow Chemical, the main seller of imported polyethylene (PE) in Brazil, is limiting November increases to only linear low density PE (LLDPE) octene and high density PE (HDPE) blow moulding grades, a company source said on Friday.
Initially, the company announced a price increase of reais (R) 150/tonne (€57/tonne, $72/tonne) for all grades effective 1 November.
Since Braskem – the local producer with a commanding share of the domestic market – has not made any price moves this month, the Dow initiatives have not found traction among buyers.
November PE prices are softening in international markets as buyers diminish stocks at year end.
Braskem sources said the company is striving to align domestic pricing policy more closely with international price trends. A November price increase for PE would have been a move in the opposite direction.
Currently, Low density PE (LDPE) prices in Brazil are at $2,535-2,632/tonne FOT (free on truck), while LLDPE butene levels are at $2,414-2,511/tonne FOT. HDPE blow moulding grades are at $2,438-2,584/tonne FOT, according to ICIS data.
Assessed Brazilian PE prices include the PIS/Cofins tax, which adds nearly 10% to the price.
($1 = €0.78)
($1 = R2.07)
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