Correction: In the ICIS story headlined "Mexico's Indelpro reduces April PP prices by 1 cent/lb" dated 17 April 2014, please read in the first paragraph ... "all grades of PP" ... instead of ... "all grades of PS". A corrected story follows:
HOUSTON (ICIS)--Mexico’s sole polypropylene (PP) producer, Indelpro, reduced prices of all grades of PP by 1 cent/lb ($22/tonne) in April to reflect a similar decline in feedstock propylene contracts in the US Gulf, a company source said on Thursday.
Prior to the April price reduction, homopolymer PP prices in Mexico were in the range of $1,986-2,030/tonne FOT (free on truck), according to ICIS data.
PP demand in early April has grown over March, but the interruption brought by the Easter holiday is making sellers believe that April sales will end up on par with those of March.
There are good expectations for May and beyond, but results will depend largely on the economy, which has not performed as initially expected this year.
The pick-up in activity in recent weeks may have been due in part to some participants preparing inventories in anticipation of the long holiday, the source said.
Export activities remain limited, as neighbouring countries continue to find better prices on PP products from other regions, mostly Asia.
PP production in Altamira, where the Indelpro plant is located, has been normal, unaffected by the Easter holiday, the source said.