Brazilian petrochemical producer Braskem is cutting domestic prices for its low-density polyethylene by Real 100/mt (around $30/mt), a company source said Friday.
The adjustment is approximate and includes the standard Brazilian PIS and Cofins taxes, the source said.
Braskem will keep domestic prices steady for all other grades of PE -- linear low-density, high-density injection, HD film and HD blowmolding -- while also leaving domestic polypropylene prices unchanged, the source said.
Some Brazilian market sources had been expecting Braskem to cut prices on all grades of PE to start July, citing softening global prices. When Braskem rolled over domestic prices to start the month, there was still some expectation for at least a reduction for LDPE, given the gap between its pricing and that of LLDPE, sources said.
Some buyers report a difference of Real 350-400/mt between Braskem's prices for LDPE and LLDPE, and said that the spread should be closer to Real 250-300/mt to reflect the differences in international pricing.
Domestic Brazilian PE was last assessed by S&P Global Platts on Wednesday, with LDPE at Real 5,550/mt, LLDPE at Real 5,200/mt, HDPE blowmolding at Real 5,150/mt, HDPE film at Real 5,100/mt and HDPE injection at Real 5,450/mt. All assessments were made on a delivered Sao Paulo basis.
