Aggressively priced PP from Asia to Latin America is compelling Latin producers to mull prices cuts. Mexican polypropylene producer Indelpro has reduced June offer prices for the domestic Mexican market by US$154/mt, on impending lower propylene prices, weak demand in May and competitive offers from Asia, as per Platts.
Mexican polypropylene export offers to Andean countries and Central America dropped by US$200/mt to US$2020/mt CFR for homo raffia and injection and to US$2100/mt for co-polymer. Despite the lower prices, Asian offers to Peru were at least US$200/mt lower at US$1800/mt CFR for homo and at US$,820/mt CFR for co-polymer.
Mexico's domestic propylene price is tied by formula to the US Gulf contract price. The US CP remains under negotiation, with the contract was likely to fall by over 10 cents/lb.