October Brazilian polyethylene offers to Colombia plunged by US$80-90/mt over September, falling to become the most attractive ones in the Latin American market, as per Platts. Despite tanking by 100 dollars, offers from USA were too high to compete with those from Brazil. Brazilian HDPE film offer to Colombia was heard at US$1430/mt CFR, whereas those from USA stood at US$1576/mt CFR Cartagena, and from Asia at US$1550/mt CFR.
October Brazilian HDPE blow molding offer stood at US$1450/mt CFR, at US$1488/mt from the US. For HDPE injection, offers from the US were pegged at US$1533/mt CFR vs the Brazilian offers at US$1510/mt CFR. In the Andean countries (Colombia, Peru, and Ecuador) bids for HDPE film were heard at US$1400/mt CFR, US$1390/mt CFR for blow molding and at US$1470/mt CFR for injection.
Despite these low levels, buyers in Brazil prefer to wait in the sidelines as they await resumption of markets in China post-holiday. Expectations of weak buying in China could impact Asian offer levels. Buyers could also try to negotiate some deals with Brazil soon to balance inventories because the delivery time is shorter compared to Asia. This is the peak demand season for HDPE and LLDPE in Brazil due to the end of year festivities.