02 May 2013 22:38 [Source: ICIS news]
HOUSTON (ICIS)--Ecopetrol, Colombia’s sole polyethylene (PE) producer, reduced the price of low density PE (LDPE) by 3% effective 1 May, a company source said on Thursday.
The reduction relative to the prior month was 4.1%, the source said, but from the last mid-month adjustment, prices were reduced by only 3%.
Ecopetrol only produces LDPE at its 64,800 tonne/year plant located in Barrancabermeja and adjusts its price every month, following international pricing trends and currency fluctuations.
May’s reduction reflects declining prices in international markets, where prices have eroded in recent weeks.
Bulk LDPE prices for May were set at Colombian pesos (Ps) 3,533/kg ($1,930/tonne, €1,467/tonne) cash price, although large-volume buyers receive substantial discounts.
The reduction applies only to domestic LDPE production. Imported product is sold at CFR (cost and freight) Cartagena prices plus handling costs.
Demand remains soft, considering that buyers expect prices to decline further.
($1 = €0.76)
($1 = Ps1,831)
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