Argentina’s January PP prices up on currency devaluation

03 January 2014 22:04 Source:ICIS News

HOUSTON (ICIS)--Polypropylene (PP) producers in Argentina are increasing prices for all grades in January to compensate for currency devaluation, buyer and producer sources said on Friday.

The increase from one producer was described as an 8.5% increase over December levels, equivalent to nearly $171/tonne (€125/tonne).

A second producer is raising prices by Argentine peso (Ps) 500/tonne, equivalent to $76/tonne.

The increase addresses devaluation but does not take into account potential propylene increases, expected to be nearly 7 cents/lb for US Gulf (USG) January contracts. This will likely generate more increases in February, in addition to devaluation adjustments.

Prior to this increase, homopolymer PP prices in Argentina were at $2,048-2,089/tonne for raffia, while injection material was in the range of $2,096-2,120/tonne, according to ICIS data.

Demand has remained strong from the tubular goods sector and the automotive sector, and so far overall conditions are steady, according to converter sources.

Production is expected to be mostly normal, at least for one producer.

The main PP producers in Argentina are Petroquimica de Cuyo and Petroquimica Ensenada (Petroken).

($1 = €0.73, $1 = Ps6.56)

By George Martin