Braskem does not plan to raise domestic polyethylene and polypropylene prices in September, a company source said Thursday. There have been expectations among market participants that prices would move higher following an uptick in oil pricing.
An increase by Braskem would be helpful for traders and distributors who import material, considering the devaluation of the real against the US dollar, multiple sources said. Thursday’s exchange rate was Real 3.74/US dollar, a Brazil high.
“It is hard to compete with the competitive domestic prices when the import level we are hearing is $50/mt higher than the local market,” a Brazil-based distributor said.
“Nobody wants to import because it is cheaper buying domestically and also we avoid to contract debts in dollar,” the Brazil-based distributor added.
However, Braskem told Platts Thursday that prices were stable in August and will remain that way in September. South America’s largest resin producer, Braskem bases its increases or decreases on international pricing dynamics and also takes into consideration the devaluation of the real against the US dollar.
“The balance between international prices has been falling while the exchange rate has been increasing. Thus, prices will be stable in September,” a source close to Braskem business said Thursday.
Yet, multiple players still have the sentiment that prices could increase following a recent uptick in crude prices.
In Brazil, the LDPE was assessed flat Wednesday at $1,215-$1,225/mt CFR Brazil week on week, as demand remained low despite continued aggressive offers from Asia and the US.
The HDPE film was $40/mt down, assessed at $1,185-$1,195/mt CFR; injection and blowmolding were flat, with both at $1,185-$1,195/mt CFR. PP resins fell $20/mt with hompolymer at $1,165-$1,175/mt CFR basis.
