raskem has raised prices for all polyethylene grades in Brazil by roughly Real 400/mt ($101/mt), a company source said Friday.
The move, which took effect Thursday, matches the PE increase Braskem implemented last month.
The increase applies to the PE grades Braskem sells, including high density, low density and linear-low density, the source said. The increase comes after Dow Brasil last week announced an increase of Real 500/mt ($126/mt) on polyethylene prices, also starting October 1.
“Domestic prices in Brazil are definitely going up,” a Brazil-based distributor said, adding the changes can improve the Brazilian import market.
Braskem, South America’s largest resin producer, usually bases the increases on international pricing dynamics, also taking into account the devaluation of the Real against the US dollar. The Real has reached its weakest levels against the dollar in the last 13 year, not taking into consideration the rate of inflation, according to the Brazilian Central Bank.
The Brazilian currency has made imports difficult throughout 2015 against a strong US dollar and has recently concerned market participants, multiple sources said. Braskem increased polypropylene prices by Real 500/mt ($126/mt) in mid-September, “but for October we don’t have yet any announcement for PP increases,” the Braskem source said.
In Wednesday’s weekly assessment, HDPE film dropped $5/mt to $1,210-$1,220/mt CFR Brazil based on US trading levels talked at $1,195/mt CFR basis, with CAD payment. When normalized to adjust for payment terms ($20/mt premium), the price was $1,215/mt CFR.
The LDPE assessment was $30/mt lower at $1,215-$1,225/mt based on a notional trade level for US-origin material at $1,200/mt CFR Brazil basis, with CAD payment. When normalized to adjust for payment terms by way of a $20/mt premium, the price was $1,220/mt CFR Brazil.
Assessments rose $10/mt at $1,165-$1,175/mt for homopolymer, based on trading levels for Asia and Middle East-origin material talked at $1,150-$1,180/mt CFR basis with cash-against-documents payment terms. When normalized for payment terms, by way of a $20/mt premium, the price level would be $1,170-$1,200/mt.