29 November 2012 16:47 [Source: ICIS news]
HOUSTON (ICIS)--Petroquim, Chile’s sole polypropylene (PP) producer, is maintaining prices steady again in December despite buyer expectations for a typical year-end price decline, a company source said on Thursday.
Feedstock propylene prices went up by $88/tonne (€68/tonne) in November. The local producer will absorb the extra costs, but prices will not go down in December as buyers expected.
PP homopolymer prices in Chile will remain at about $1,580/tonne for large-volume buyers, while exports prices will be slightly lower at $1,540/tonne to better compete with other regional producers such as Brazil's Braskem and Colombia's Propilco.
Demand from nearby countries such as Peru and Ecuador remains strong, but export volumes in Chile are limited.
Domestic PP production in Chile remains affected by low supply of propylene and ethylene for copolymers, but the volumes received from the local refiner have stabilised in recent months.
($1 = €0.77)
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