04 November 2013 21:25 [Source: ICIS news]
HOUSTON (ICIS)--Brazil’s sole polyethylene (PE) producer Braskem is reducing domestic prices for two grades of PE by R100/tonne ($45/tonne, €33/tonne) effective 1 November, a company source said on Monday.
The grades affected by the reduction are linear low density polyethylene (LLDPE) and high density polyethylene (HDPE).
There were no announcements for low density polyethylene (LDPE) prices, which will remain unchanged until new notice.
The price reduction is in keeping with Braskem’s adopted policy of moving prices following international trends.
However, US Gulf October ethylene contract prices, which are settled after the month has expired, have not settled yet, although some indications point to a slightly weaker settlement this month or a rollover at best.
US Gulf October PP contracts settled unchanged.
Slower October demand in the Brazilian domestic market is seen as a stronger incentive for this reduction as Braskem gears up to maintain sales volume at the end of the year.
With this reduction, LLDPE butene prices in Brazil are at $2,525-2,614/tonne and for HDPE blow moulding at $2,592 -2,725/tonne, according to ICIS data.
LDPE prices were unchanged at $2,725-2,813/tonne, according to ICIS data.
Prices in Brazil include PIS/COFINS taxes, which add 9.25% to the price.
Imports from Argentina enter the country on a regular basis using advantages granted by the Mercosur agreement, but the prices set by the domestic producer are the main reference in Brazil.
($1 = €0.74, $1 = R2.24)
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