Mexico’s Pemex increases polyethylene prices for some grades

28 February 2014 09:52 Source:ICIS Chemical Business

Mexico’s sole polyethylene (PE) producer Pemex increased prices for linear low density polyethylene (LLDPE) and high density polyethylene (HDPE) blow moulding effective 19 February, distributor sources said on 19 February.

The increase was the same for the affected grades, amounting to 3%. Pemex did not change prices of HDPE injection or low density polyethylene (LDPE) grades.

The rises were attributed to tight supply of HDPE and LLDPE, a situation also found applicable to imported US material.

Prices of imports have also gone up, but the increases were on average around 2.5%.

Imported resins are typically more expensive than domestic grades, but gain competitiveness when the US dollar falls, which has been the case in recent days.

The US dollar is currently at Ps13.26 after being around Ps13.50 in late January.

Prior to this increase, Mexico’s domestic LDPE prices were at $1,662-1,811/tonne FOT (free on truck), while LLDPE prices were in the range of $1,416-1,584/tonne.

HDPE blow moulding prices were at $1,502-1,648/tonne FOT, according to ICIS data.

By George Martin