Competitive US origin PE to Peru, Colombia likely to continue through year-end

13-Oct-15

Competitive US-origin polyethylene pricing to Peru and the West Coast of South America is likely to continue through the end of the year as Peru's currency gains on the US dollar, as per sources in Platts. 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." Also, the Colombian peso was also heard rebounding from a Q3 slump, gaining almost 7% vs the dollar last week. The strengthening peso may not be a reflection of improvement in the economy but rather a correction in value, the source said.