Mexico HDPE supplies short as unit extends maintenance − sources

03 April 2014 22:49  [Source: ICIS news]

HOUSTON (ICIS)--Extended maintenance at one of the only two existing high density polyethylene (HDPE) production lines in Mexico has caused shortages of the resin, sources said on Thursday.

One of the two production lines of HDPE in Morelos has been down for at least a week and a half and the turnaround, which was originally expected to end this week, was extended and would now last about another 10 days, the company informed its customers this week, market sources said.

Pemex has two production lines at Morelos, one with 100,000 tonnes/year and a second with 80,000 tonnes/year, according to ICIS plants and projects. Sources did not identify the specific line, but it was the only one believed to be out.

The information comes as some participants in the Mexican market expect increases in PE of about 2 cent/lb ($44/tonne) for the month, in part because of the reduced supplies and in part because part of the market may decide to track potential price increases announced in the US.

Pemex officials could not be immediately reached for comment.

By: Renzo Pipoli
+1 713 525 2653

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