Competitive US-origin polyethylene pricing to Peru and the West Coast of South America may continue through the end of the year as Peru’s currency gains on the US dollar, sources said Friday.
“We are finding stability in our currency,” a Peru-based distributor said.
US-origin PE has remained competitive throughout 2015 in part due to pricing and its shorter transit time in comparison with Asia, sources said.
However, competitive pricing was hampered by a strong US dollar — making import material more expensive — throughout the third quarter.
“The US dollar is not as strong as it was last month,” a Peru-based buyer said, adding “the sol is at 3.22 to 1 USD.”
Elsewhere, the Colombian peso was also heard rebounding from a Q3 slump.
“The peso last week gained 7% against the US dollar,” a Colombia-based distributor said, adding that the peso was hovering at 2,900 to the US dollar.
The strengthening peso may not be a reflection of improvement in the economy but rather a correction in value, the source said.
Peru is hosting International Monetary Fund meetings as well as the Board of Governors of the World Bank from October 5-12 in Lima.
Polymer trading was heard slowing for the week as the country celebrated the Battle of Angamos on Thursday and Friday was declared a holiday in order to relieve traffic in the city, sources said.
Platts assessed import pricing into Peru on Wednesday at $1,215/mt for LDPE, flat on the week; at $1,205/mt for LLDPE, also flat for the period; and at $1,205/mt for HDPE film, down $10 week on week.
In Peru, PE import pricing has fallen to their lowest levels since Platts launched the assessments in 2010 in part due to competitive pricing from the US.
