Venezuela resins producer resumes deliveries despite currency issues

15 February 2013 23:37  [Source: ICIS news]

Venezuela resins producer resumes deliveries despite currency issuesHOUSTON (ICIS)--Pequiven, Venezuela’s sole polyolefins producer, has resumed deliveries of domestically produced plastic resins through its distribution channels, buyer sources said on Friday.

Transformers initially received a letter from state-owned producers and distributors of plastic resins announcing that all deliveries have been suspended until decisions are made about their pricing.

After some deliberation, the producer resumed deliveries of domestic resins, but it is withholding volumes of imported material purchased to complement local production, buyer sources said.

Apparently, the distinction was made because it is not certain whether those imports will have to be paid at Bolivar (Bs) 4.30 or Bs6.30 per dollar.

Domestic resins are still delivered at the price effective prior to the devaluation.

The domestic producer had not been available for comment.

The currency devaluation was published in the official publication of the Venezuelan government as exchange agreement No. 14, effective 9 February.

The shortages of material are starting to pile up and may be further threatened by a one-week plant stoppage to the linear low-density polyethylene (LLDPE) plant starting next week, sources said.

By: George Martin
+1 713 525 2653

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