30 October 2013 21:32 [Source: ICIS news]
HOUSTON (ICIS)--Mexico’s Pemex reduced the price of polyethylene (PE) resins for all domestic grades, in a move intended to restore competitiveness affected by a weaker US dollar, distribution sources said on Wednesday.
The price reduction was effective on 29 October and it reduced the price of low density polyethylene (LDPE) by 6-7% depending on grade, while high density polyethylene (HDPE) grades were reduced by 5%.
The largest reduction was applied to linear low density polyethylene (LLDPE) grades for extrusion, reduced by 7%. Rotomoulding material was reduced by 6%.
Prices had been increased by 3% on 8 October when availability of material was very tight in Mexico after a prolonged turnaround of the 650,000 tonne/year Cangrejera cracker and the stoppage of several PE plants for lack of ethylene.
A weaker US dollar has improved competitiveness of imported plastic resins to the detriment of domestic grades.
In addition, there are some indications that the price of imported resins could also decline in November, although the amount of the reductions is still being discussed, market sources said.
Prior to this reduction, LDPE prices in Mexico were at $1,699-1820/tonne (€1,240-1,329/tonne) FOT (free on truck), LLDPE prices at 1,479-1,608/tonne FOT and HDPE blow moulding prices at $1,548-1,635/tonne FOT, according to ICIS data.
Pemex is the only PE domestic producer in Mexico. The Braskem-Idesa joint venture (JV) for the Ethylene XXI project is scheduled to start PE production in the second half of 2015.
($1 = €0.73)
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