06 December 2012 17:05 [Source: ICIS news]
HOUSTON (ICIS)--Mexico’s sole polyethylene (PE) producer Pemex reduced the price of all high density polyethylene (HDPE) grades by 3.5% effective 6 December to better compete with aggressively priced imports from the US, a company source said on Thursday.
Other grades such as low density polyethylene (LDPE) and linear low density polyethylene (LLDPE) had their prices unchanged.
The HDPE price reduction was inspired by declining import prices offered to Mexico by distributors and traders.
Demand is soft in Mexico as buyers strive to end the year with minimal stocks. However, since inventories are low throughout the chain, there are still many transformers who need material, but not in substantial quantities.
Prior to today’s reduction, Mexico’s domestic HDPE blow moulding prices were at $1,485-1553/tonne (€1,129-1,180/tonne) FOT (free on truck), according to ICIS data.
The HDPE plants are running normally in Mexico, the source said. There is good supply of plastic resins for all grades.
($1 = €0.76)
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