03 January 2013 22:38 [Source: ICIS news]
HOUSTON (ICIS)--Polypropylene (PP) producers in Argentina are increasing prices for all grades in January to offset rising feedstock costs and to compensate for currency devaluation, buyer sources said on Thursday.
The increase for most buyers was described as about Argentinean pesos (Ps) 0.15/kg (about $30/tonne, €23/tonne), although buyers who were able to defer earlier increases could see as much as a 5% increase, according to local sources.
January resin demand appears to be an improvement over December because many multinational companies reduce stocks at the end of the year and need to rebuild them in January, a transformer said.
Another factor supporting the increase is the fact that January propylene prices are headed up in benchmark US Gulf markets.
January nominations are at plus 11.5-13.0 cents/lb over December values. No settlement has been reached.
Production of copolymers was said to be normal with good availability of ethylene during the warmer months of the year in the southern hemisphere.
Prior to this increase, PP prices in Argentina were $1,938-1,989/tonne for raffia, while injection material was in the range of $1,999-2,029/tonne, according to ICIS data.
The January increase applies also to copolymers and random material.
The main PP producers in Argentina are Petroquimica de Cuyo and Petroquimica Ensenada (Petroken).
Product from Brazil is also sold in Argentina, although is subject to import restrictions that require special permits.
($1 = €0.76)
($1 = Ps4.93)
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