HOUSTON (ICIS)--Braskem, the sole polyethylene (PE) producer in Brazil, is reducing the price of all grades of PE for a second time in November, a company source said on Friday.
The measure will reduce PE prices by Reais (R) 150/tonne ($40/tonne) in addition to last week’s reduction of R200-250/tonne ($54-68/tonne) including PIS/COFINS taxes, which add about 10% to the price. ICIS reports net prices (no taxes included).
The declines come as the real has recovered against the dollar.
Plastic processors sought a price reduction in view of declining international prices.
Even with the decrease, prices are still very high in comparison with international prices, suggesting that further adjustments could come in the short term.
Prior to this reduction, LLDPE prices in Brazil were in the range of $1,794-1,912/tonne FOT (free on truck), according to ICIS records.
($1 = R3.76)Braskem reduced Brazil's LLDPE prices twice in November.