14 January 2013 22:36 [Source: ICIS news]
HOUSTON (ICIS)--Dow Chemical told its clients in Brazil that the prices of all grades of polyethylene (PE) offered by its Brazilian subsidiary will be increased by R200/tonne ($99/tonne, €74/tonne) on 1 February, a company source said on Monday.
The initiative follows an earlier announcement by Braskem, the domestic PE producer in Brazil, which is seeking a R200/tonne price increase for all grades of PE effective 15 January.
The Braskem increase was initially reported by ICIS last week as a R150/tonne increase, but a company source corrected the amount on Monday.
It was unclear whether Braskem will seek another increase in February.
The price increases follow initiatives in the US Gulf PE market, where producers are seeking a 5 cent/lb increase for January.
Currently, low density polyethylene (LDPE) prices in Brazil are at $2,555-2,653/tonne FOT (free on truck), while linear low desnity polyethylene (LLDPE) butene levels are at $2,432-2,530/tonne FOT. High density polyethylene (HDPE) blow moulding grades are at $2,456-2,604/tonne FOT, according to ICIS data.
The 11 January prices were slightly higher than those on the 4 January report because of currency exchange-rate fluctuations.
Assessed Brazilian PE prices include the PIS/Cofins taxes, which add approximately 10% to the price or more, depending on product destination.
($1 = €0.75, R2.03)
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