PE offers from Asia could make Brazil rethink prices for July

15-Jun-11

Aggressive June polyethylene and polypropylene offers from Asia to Brazil could make Braskem rethink resin offer prices for July, as per Platts. In the beginning of the month, Brazil's Braskem announced a rollover in polyethylene and polypropylene offers for June from May levels. Offers may be revised if China does not return as a buyer to the market and Asia continues to offer in low levels. Delivery time from Asia to Brazil was 45 days. Braskem's June polyethylene for the domestic market were heard at Reals 4700/mt FOT (with pis/coffins) for LDPE film, Reals 4350/mt FOT for HDPE blowmolding and at Reals 4400/mt FOT for HDPE injection and film. June Asian offers to Brazil were Reals 700-800/mt lower at US$1700/mt FOB (Reals 4000/mt with all the taxes and freight to the port), US$1450/mt FOB for HDPE blowmolding (Reals 3250/mt), US$1390/mt FOB for LLDPE butene (Reals 3350/mt with all the taxes and freight). Currently, US offers were very expensive and Asia has the best polyethylene offers in the market now. Deal prices between Brazil and Asia in the first week of June were pegged at US$1535/mt CFR for LLDPE butene (Reals 4180/mt with all the taxes), US$1520/mt CFR for HDPE film (Reals 4150/mt with all the taxes). June US offers to Brazil were at least US$250/mt more comparing to the Asia levels at US$1800/mt CFR for HDPE film and at US$1700/mt CFR for HDPE blowmolding and injection.