04 February 2013 23:12 [Source: ICIS news]
HOUSTON (ICIS)--One of two polypropylene (PP) producers in Argentina is increasing prices for all grades of PP in February to offset rising feedstock costs and currency slides, buyer sources said on Monday.
The increase for most buyers was described as about Ps0.65/kg (about $130/tonne, €95/tonne), effective on 1 February, buyers said.
Prices had increased by about $30/tonne in January.
The February increase was justified on higher costs, since January propylene contract prices in benchmark US Gulf markets have increased by 15 cents/lb and nominations for February bring the possibility of an additional seven to 10 cents/lb on tight supply.
It is likely that the other producer, Petroquimica Ensenada (Petroken), will seek similar increases, but its plant is undergoing maintenance after an unplanned outage.
Production is expected to normalise around mid-February, according to local market sources.
Petroken does not comment about its operational issues.
Prior to this increase, PP prices in Argentina were at $1,950-2,000/tonne for raffia, while injection material was in the range of $2,010-2,040/tonne, according to ICIS data.
PP producers in Argentina are Petroquimica de Cuyo and Petroken.
Product from Brazil is also sold in Argentina and the licences required to import PP material are no longer needed, because the government has recently removed such restrictions.
($1 = €0.73)
($1 = Ps4.98)
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