Dow Chemical seeks April PE price increase for Andean region

HOUSTON (ICIS)–Dow Chemical is seeking a 3 cent/lb ($66/tonne) price increase in the Andean region for all polyethylene (PE) resins effective 1 April, a company source said on Tuesday.

The increase applies to the Caribbean, Central America and the Andean region of South America, comprising Colombia, Ecuador, Peru and Chile.

The measure comes on the heels of a 6 cent/lb increase currently under implementation, but at a time when lower crude oil prices are reversing the uptrend on petrochemicals.

The current increase is already hard to sell in the region and competition from other markets will intensify in April and beyond, sources said.

LDPE domestic prices in the Andean region are around $1,470-1,570/tonne for LDPE, and around $1,300/tonne for the other grades.

Regional alternatives come from Braskem, which supplies material from plants in Brazil and Mexico. Other sources are US producers, SABIC and established traders.