04 November 2013 19:59 [Source: ICIS news]
HOUSTON (ICIS)--Brazil’s sole polypropylene (PP) producer Braskem is reducing domestic prices for all grades of PP by R50-70/tonne ($22-31/tonne, €16-23/tonne) effective 1 November, a company source said on Monday.
The price reduction is in keeping with Braskem’s adopted policy of moving prices following international trends.
US Gulf November propylene prices have not settled yet, but market expectations suggest propylene prices could weaken again this month, following a 2.5 cents/lb reduction in October contracts.
A stronger reason for the price reduction has been slower demand in the Brazilian domestic market during October, when Braskem kept prices steady despite lower propylene prices abroad.
Reaction from buyers has been muted so far, because the month is just starting and many still have enough stocks to get by.
With this reduction, PP prices in Brazil are at $2,685-2,827/tonne for raffia and $2,694-2,836/tonne for injection applications, according to ICIS data.
Prices in Brazil include PIS (social integration) and COFINS (social contribution) taxes, which add 9.25% to the price.
($1 = €0.74, $1 = R2.24)
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