Brazilian buyers halted imports of polyethylene and polypropylene this week, the direct result of the US dollar strengthening almost 20% in 15 days.
"The import market in Brazil is totally on standby at the moment. The dollar value against the real went from $1.55 to $1.88, and we don't see any possibility of negotiation because of that in the next 10 days, unless the dollar falls strongly next week," a buyer said Thursday.
Asian polypropylene offers to Brazil were heard this week at $1,630/mt CFR for homo and at $1,660/mt CFR for co-polymer, a decrease of $30/mt over the previous week.
"It seems Asia started to reduce the offer levels again because producers don't want to have inventories at the end of the year," the buyer said.
Asian polyethylene offers to Brazil remained flat over last week at $1,520/mt CFR for HDPE blow molding and injection, $1,500/mt CFR for LLDPE and at $1,640/mt CFR for LDPE film.
September US polyethylene offers to Brazil were higher than the Asian ones at $1,560/mt CFR for LLDPE, $1,720/mt CFR for LDPE film and at $1,570-1,580/mt CFR for HDPE blow molding and injection.
"US prices are flat, but the petroleum prices went down dramatically (Thursday), so we believe the US offers could decrease at least $100/mt for October," another Brazilian resin buyer said.
