Polyethylene freight costs to Brazil from Thailand and South Korea went up $30/mt this week, making pricing from the two Asian countries not seem attractive, traders said Tuesday.
"With a higher freight cost and the taxes to intern the product in Brazil, Thai and South Korean offers are not good at the moment," said a trader in Brazil. "If the prices from those countries goes down in June, everything is going to depend on the dollar exchange rates again."
The dollar's strength against the Real has been a problem in the polyethylene import Brazilian market since January. The dollar value against the real Tuesday was $1.92 and to have a healthy import market the dollar value should be around $1.71.
With the $30/mt boost bringing freight costs to $120/mt, South Korean offers to Brazil were around $1,620/mt CFR for HDPE film and blow molding, and $1,610/mt CFR for HDPE injection, while Thai offers were around $1,580/mt CFR for HDPE film and at $1,560/mt CFR for LLDPE film.
"The import market is very slow, but we could manage some deals this week with China and Iran because local producer Braskem raised its offers by Reals 250/mt," added the trader.
LDPE film deal price this week between China and Brazil was heard at $1,560/mt CFR while LLDPE butene between Qatar and Brazil was at $1,550/mt CFR.
According to a second source in Brazil, Braskem was offering May at Real 4,150/mt CIF ($2,161/mt) for LDPE film, Real 3,950/mt CIF ($2,068/mt) for HDPE for film, injection and blow molding and at Real 3,900/mt CIF ($2,031/mt).
