27 February 2013 22:48 [Source: ICIS news]
HOUSTON (ICIS)--Mexico’s sole polyethylene (PE) producer Pemex reduced the price of all grades of PE by 5% effective 26 February, distribution sources said on Wednesday.
The reduction was applied across the entire line of plastic PE resins without differentiation.
The reason for the reduction was the slow demand that has ensued since the application of a nearly 7% increase on 5 February.
Availability of low density polyethylene (LDPE) is ample in Mexico at this time. High density polyethylene (HDPE) grades are tight, particularly for low fluidity applications.
Availability of linear low density polyethylene (LLDPE) grades was also said to be normal.
High density polyethylene (HDPE) high molecular weight (HMW) from the Middle East was said to be offered at about 58 cents/lb ($1,279/tonne, €985/tonne) CFR Veracruz, Mexico, a very competitive level.
Imports from the US Gulf remained in tight supply, according to Mexican buyers.
Market participants expect that March prices will be unchanged in Mexico, particularly for US imports.
Prior to this late February reduction, Mexico’s domestic LDPE prices were at $1,646-1,763/tonne FOT (free on truck), while LLDPE prices were in the range of $1,489-1,756/tonne, according to ICIS data. HDPE blow moulding prices were at $1,591-1,677/tonne FOT, according to ICIS data.
($1 = €0.77)
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