22 January 2014 23:31 [Source: ICIS news]
HOUSTON (ICIS)--Mexico’s sole polyethylene (PE) producer Pemex increased prices for all grades of the resin, a company source said on Wednesday.
The increases varied for each grade of PE, with the steepest hike, 6%, applied to linear low density polyethylene (LLDPE).
Pemex increased low density polyethylene (LDPE) prices by 4%, while high density polyethylene (HDPE) prices for injection and blow moulding went up by 5%.
The increases were attributed to currency devaluation and partly also to overall market conditions.
The US dollar has gained value of late and was today at peso (Ps)13.34, nearly 3% higher than the value recorded on 13 December at Ps12.96.
Prices of imported plastic resins at the border have increased by 2-3 cents/lb ($44-66/tonne), in tight supply conditions.
All PE production plants in Mexico are operating normally in December, but inventories are still somewhat tight for LLDPE butene.
Prior to this increase, Mexico’s domestic LDPE prices were at $1,596-1,709/tonne FOT (free on truck), while LLDPE prices were in the range of $1,335-1,451/tonne, according to ICIS data.
HDPE blow moulding prices were at $1,427-1,507/tonne FOT, according to ICIS data.
Imported plastic resins sold by distributors in Mexico were also more expensive this week, with increases ranging from 2.50% to 2.63%.
Pemex is the only producer of PE products in Mexico. The Braskem-Idesa joint venture is expected to start production on the second half of 2015.
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