07 January 2013 21:43 [Source: ICIS news]
HOUSTON (ICIS)--Brazil’s sole polypropylene (PP) producer Braskem is seeking to increase domestic prices for all grades of PP in January by R150/tonne ($74/tonne, €56/tonne), a company source said on Monday.
Reaction from buyers has been muted so far because activities have not resumed in full after the year-end holidays.
In addition, large PP volumes are typically sold at the end of the month in Brazil, sources said.
The Brazilian PP increase is modest in view of large January nominations for feedstock propylene in US contract negotiations – historically an important indicator for plastic resin sales in the American continent.
The January US propylene contracts could potentially go up by 13 cents/lb ($287/tonne) because of limited propylene supply.
There were expectations in Brazil that demand would pick up in January because transformer’s inventories are usually low at the end of the year.
Prior to the January increase, PP prices in Brazil are at $2,548-2,645/tonne for raffia and $2425 -2,523/tonne including local taxes (PIS/COFINS), according to ICIS data.
($1 = R2.03, $1 = €0.76)
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