LatAm PE dropping back to August price levels

13 October 2016 20:57 Source:ICIS News

HOUSTON (ICIS)--Latin America polyethylene (PE) prices were heard to be dropping back to August levels, erasing September's increase, various sources in different regions confirmed this week.

In Colombia, Peru and Chile, PE prices on a CFR (cost and freight) basis for high density (HDPE), linear low density (LLDPE) and low density (LDPE) were heard from different destinations as follows :

• HDPE: $1,170-1,240/tonne
• LLDPE: $1,280-1,290/tonne
• LDPE: $1,330-1,410/tonne

As for Mexico, sources said on Thursday that prices were at about the same level, but delivered to the buyer's plant.

These prices range below September offers by about $40-50/tonne.

Sources agreed that demand weakened after the September price increase, and buyers adopted a purchase-as-needed attitude.

For October, three US producers separately announced that they will be seeking price increases. The results may depend on demand.

October is usually a robust month for demand because processors prepare orders for year-end holidays.

At the same time, buyers expect a price drop from increased competition among sellers and increased capacity from Ethylene XXI in Veracruz, Mexico; Nova Chemicals in Alberta, Canada; and Sasol/INEOS in Texas, US.

But that is still uncertain. To date, only product from Braskem-Idesa's Ethylene XXI project has been made available.

By Marianela Toledo