Mexico’s LDPE production falls on ethylene shortage

06 December 2012 17:41  [Source: ICIS news]

HOUSTON (ICIS)--Mexico’s production of low density polyethylene (LDPE) has diminished because of a rationalisation of ethylene at Pemex plants, a source with the company said on Thursday.

One of three 100,000 tonne/year LDPE trains at the Cangrejera facility remains down in December because of a lack of ethylene and is scheduled to restart next week.

The Cangrejera plant has three trains with a total capacity of 300,000 tonnes/year. Production is normal at two of those trains.

Despite the stoppage, supply of LDPE is normal in Mexico because of softer demand at the end of the year. However, exports of this grade are affected.

There is some erosion of import prices detected in Mexico, as suppliers compete to place volumes with reticent buyers.

Mexico’s LDPE prices are in the range of $1,446-1,562/tonne (€1,099-1,187/tonne) FOT (free on truck), based on ICIS data.

($1 = €0.76)


By: George Martin
+1 713 525 2653



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