Brazilian polyethylene producer Braskem increased September's offer prices for the domestic market by Reals 200-250/mt ($117.27-$146.60/mt) mainly due to the 9.5% rise of the US dollar against the real over the past 10 days, a source said Wednesday.
"Besides the exchange rate, polyethylene demand in the Brazilian domestic market was firm, and at this time of the year the customers are getting ready for the end of the year festivities which improves the volumes," the source said.
September Braskem offers for HDPE and LLDPE went up by Reals 250/mt and LDPE offer prices by Reals 200/mt.
Following the increase, the HDPE offer price for the Brazilian domestic market was Reals 4,320/mt FOT for HDPE blow molding, Reals 4,500/mt FOT for HDPE injection and film and at Reals 4,450/mt FOT for LLDPE butene. LDPE film offer price was heard at Reals 4,660/mt FOT (prices with pis/coffins).
A trader in the Brazilian market said the imports are slow at the moment because of the exchange rate.
"Customers are concerned with the dollar value going up, and even though the country doesn't have inventories, resin purchases from the import side are on stand by," said the source.
According to the source, polyethylene offers from Asia to Brazil for September were stable over August and in some cases with a slight decrease of $10/mt.
September offers from China to Brazil were heard at $1,540/mt CFR for HDPE blow molding, film and injection and at $1,670/mt CFR for LDPE film. US offers to Brazil had a bigger decrease of $30-40/mt over August, and the offers were at $1,570/mt CFR for HDPE blow molding, injection and film and at $1,560/mt CFR for LLDPE butene.
"US offers are getting competitive again and closer to the Asia ones. We believe in December US and Asia offers could be the same because China demand is strong now," added the source.
At the moment, bids in the Brazilian domestic market were heard $20-30/mt lower than the Asian offers at $1,510/mt CFR for HDPE, $1,640/mt CFR for LDPE film and at $1,480/mt CFR for LLDPE.
