31 July 2013 22:22 [Source: ICIS news]
HOUSTON (ICIS)--Mexico’s apparent demand for polyethylene (PE) plastic resins is growing, but the benefits are going mostly to PE imports, according to data received on Wednesday.
The combined figures of low density polyethylene (LDPE) and linear low density polyethylene (LLDPE) amounted to 986,000 tonnes in 2012.
Apparent demand in 2013 shows a growth of 4.6% during the January-June period.
However, domestic sales of these two grades declined by 3.4% in this period, while imports grew at an 11.7% clip, according to the data.
Apparent demand is calculated as the sum of domestic production plus imports.
In the case of high density polyethylene (HDPE), apparent demand was 843,000 tonnes in 2012.
In January-June 2013, apparent demand of HDPE resins grew by 4%.
For this grade, domestic sales declined by 6.4% in the period while sales of imported material grew at nearly 7%, which shows that imports are capturing a larger market share at local producers' expense.
This data supports the idea that the new Braskem-Idesa PE plants, currently under construction, will have a growing market for the resins when production starts in late 2015.
Braskem-Idesa is hoping to capture part of the market currently dominated by imports, although initially some of its production will be exported.
Demand gains could be slightly overstated by this data because PE exports are not included in the calculation.
However, in a country that is not self-sufficient in PE, exports are usually a very small percentage of domestic production.
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