03 April 2013 22:09 [Source: ICIS news]
HOUSTON (ICIS)--Polyethylene (PE) demand in Mexico has been soft during the entire month of March, but sellers are still optimistic that April demand will compensate for the low volumes of the previous month, market sources said on Wednesday.
Pemex reduced prices by as much as 5% on 19 March, just ahead of Easter week, but the reduction has yet to have a major impact in the domestic market, likely because of the holiday.
With only three days into April, demand has not shown much change yet, but sellers remain optimistic about April prospects.
Transformers have been buying small volumes, expecting a price decline that has been slow in coming.
Inventories are low throughout the downstream chain, and sellers hope that this will translate into stronger April sales.
Exports of Mexican resins have not helped much, because demand has also been soft in South America and offers of Asian material have been competitive in recent weeks.
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