HOUSTON (ICIS)--Soon-to-be Mexico’s new polyethylene (PE) producer Braskem Idesa is seeking to increase prices by $60/tonne for all grades of PE effective on 1 September, a company source said on Wednesday.
Braskem Idesa has been pre-marketing PE in Mexico prior to the start of its new plant in the fourth quarter of 2015.
The idea is to have a large enough customer base by the time production starts.
Buyers in Mexico have said that Braskem Idesa prices are competitive with those of the local producer and with imports from the US.
Some buy the so-called “green PE” which is usually more expensive, but has additional benefits for the environment.
Imported product could go up 3-4 cents/lb in August, although there are buyers that have negotiated smaller increases.
Current low density polyethylene (LDPE) prices in Mexico are in the range of $1,723-1,821/tonne FOT (free on truck).
Linear low density polyethylene (LLDPE) butene is at $1,508-1,662/tonne FOT and high density polyethylene (HDPE) blow moulding at $1,591-1,809/tonne FOT, according to ICIS data.Braskem Idesa is a joint venture made up of Braskem and Grupo Idesa. The company is building the Ethylene XXI complex in Mexico.