Despite market participants’ expectations for price reductions within the Brazilian domestic market, no reductions have been announced for November, Braskem said Wednesday.
Sources said this week that polypropylene grades — homopolymer and co-polymer — by Braskem were heard $200/mt lower in the domestic market. As for polyethylene grades, offers from Braskem were heard $160/mt lower than October offers.
“We are not practicing these reductions and we have not communicated any reduction at this level for November,” a Braskem source said Wednesday morning. “Neither for PE nor PP.”
Braskem did not say whether it will alter Brazilian domestic prices in November.
In October, domestic offers from Braskem for high density polyethylene film were heard at $2,100-2,300/mt delivered basis, sources said. Low density polyethylene offers were heard at the same level. Meanwhile, polypropylene homopolymer grade offers were heard at $2,050-$2,100/mt delivered basis.
“We are not buying at these prices because they are not competitive at all,” a Brazilian distributor said. “A decrease is very important because we are seeing lots of imported material getting into Brazil. Sooner or later, domestic prices must be revised. It is very expensive.”
However, as the dollar’s value is increasing again in Brazil, compared with the local currency, prices might be at this level for a while, other market participants said.