Dow seeks Latam PE price hike for May

HOUSTON (ICIS)–Polyethylene (PE) producer Dow Chemical will will seek a price increase for its PE products sold in several Latin America countries, according to a letter to customers obtained by ICIS on Monday.

The letter said the PE producer will be seek an increase in Brazil of reais (R)250/tonne ($71/tonne) starting 16 May. 

In addition, according to information from market sources, but not stated in the letter, prices are proposed to increase by 4 cents/lb ($88/tonne) in the Andean region and Mexico.

Low density polyethylene (LDPE) resin in the Andean region and Chile was said to be higher because of limited supply.

In Argentina, prices were proposed to increase $90/tonne.

No reason was given for the proposed increases. But international prices were pressured up in April. Additionally, supply has been limited in Argentina and Mexico. In the US, market participants noted limited supply for LDPE and linear low density (LLDPE).

Dow has a 350,000 tonne/year production facility in Argentina. Other major Latin American producers include Braskem in Brazil, Pemex in Mexico and joint venture Braskem/Idesa, also in Mexico.

($1 = R3.5)