13 March 2013 20:02 [Source: ICIS news]
MEXICO CITY (ICIS)--Mexico’s polypropylene (PP) sales remain soft in March, despite a 6 cents/lb ($132/tonne, €102/tonne) reduction implemented this month to reflect the settlement of feedstock propylene contracts in the US Gulf, an Indelpro source said on Wednesday at Plastimagen, a large exhibit for plastic markets in Mexico.
Demand is seen as better than February’s but still shows some weakness.
Buyers had expectations of a larger decline, and for this reason, demand could be limited in March.
Contract buyers are buying monthly in steady fashion, but spot buyers buy weekly and in small quantities to protect themselves from a potential PP price decline.
Another factor in the weak sales is that the Plastimagen event, which runs until Friday, has slowed sales activities in Mexico, and the Easter week celebrations will shorten the number of business days even further this month.
Demand from Central America has also declined, as buyers in that area still hold inventory, sources said.
Offers from Asia to Central America and the Caribbean are being heard at competitive levels, putting additional pressure on regional sellers.
With the March price reduction, homopolymer PP prices in Mexico are in the range of $1,961-2,028/tonne FOT, according to ICIS data.
Domestic production is normal, and there are no shortages of material for any grade.
($1 = €0.77)
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