Mexico’s HDPE and LDPE plants still on maintenance

20 November 2012 17:19  [Source: ICIS news]

HOUSTON (ICIS)--Scheduled maintenance at Mexico-based Pemex's high density polyethylene (HDPE) Mitsui plant will be over in about a week, a Pemex source said on Tuesday.

The 80,000 tonne/year plant produces HDPE blow moulding and stopped operations on 25 October, for a 30-day maintenance procedure.

One of two 40,000 tonne/year production trains is currently restarting, while the second train is scheduled to restart in about a week, the source said.

Other polyethylene (PE) production plants in Mexico are working normally, with the exception of one 100,000 tonne/year train at the Cangrejera facility that has been down throughout November, and is scheduled to restart on 1 December.

The Cangrejera plant produces low density polyethylene (LDPE) and has three trains with a total capacity of 300,000 tonnes/year.

Demand is slow these days in Mexico as buyers strive to finish the year with low stocks to minimise taxes.

Pemex has been able to supply clients from existing inventories. Additionally, imports from the US are always an alternative in Mexico. Supply remains relatively normal, the source said.

Prices have been steady in the country since Pemex made the last price reduction on 30 October. Import prices have also declined in November, but mostly for HDPE blow moulding and linear low density polyethylene (LLDPE), grades seen as slightly long.

Mexico’s LDPE prices are in the range of $1,413-1,527/tonne (€1,102-1,191/tonne) FOT (free on truck), LLDPE butene prices were at $1,277-1,511/tonne FOT, and HDPE blow moulding prices at $1,451-1,666/tonne FOT, based on ICIS data.

($1 = €0.78)

By: George Martin
+1 713 525 2653

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