US Dow seeks PE price increase in Latin America

HOUSTON (ICIS)–US producer Dow Chemical is seeking a price increase for polyethylene (PE) resins sold into the Andean region, Central America and the Caribbean, starting 15 August, according to a letter to customers obtained by ICIS on Monday.

In the letter dated 5 August, the company said that it is seeking an increase of 5 cents/lb (about $110/tonne). It did not provide a reason for the price increase.

Dow announced a similar increase in Mexico, starting 15 August. Another was announced for Chile, Brazil and Argentina, starting 1 August.

According to a source familiar with the issue, supply is tight and demand, with the exception of Argentina, has been good.

Latin America PE producers include Pemex and Ethylene XXI (Braskem Idesa) in Mexico, Dow Chemical in Argentina, Braskem in Brazil, Ecopetrol (only LDPE) in Colombia and  Polinter in Venezuela.