HOUSTON (ICIS)--Mexico’s sole polyethylene (PE) producer Pemex increased the price of low density polyethylene (PE) by 3%, effective on 10 December, a company source said on Thursday.
All other grades produced domestically were left unchanged.
Demand for PE resins has been stronger than initially expected in December, and tight domestic supply has motivated transformers to hold extra inventories.
All PE production plants in Mexico are operating normally, but inventories are still somewhat tight.
PE prices have increased sharply in January for the last three years, prompting buyers to end the year with higher than usual stocks.
Prior to this December increase, Mexico’s domestic LDPE prices were at $1,587-1,700/tonne (€1,159-1,241/tonne) FOT (free on truck), while linear low density polyethylene (LLDPE) prices were in the range of $1,364-1,485/tonne, according to ICIS data.
High density polyethylene (HDPE) blow moulding prices were at $1,461-1,544/tonne FOT, according to ICIS data.
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.
($1 = €0.73)