June ethylene contract prices in Brazil were stable over May at $1,760/mt FOB plant, a source at the country's only monomer producer, Braskem, said Tuesday.
"Even though last month in Europe ethylene contract prices were settled down by Eur 20/mt, because of the dollar-real exchange rates, the contract prices for the Brazilian domestic market were unmoved," said a source at the the company.
Brazil's ethylene price formula is attached to the European contract price movements, with a one-month month lag.
In May, with the drop of Eur20/mt, ethylene contract prices in Europe were heard at Eur1,325/mt, free delivered.
Downstream, the polyethylene import market in Brazil was showing some signs of improvement this week, a trader said.
"Braskem announced polyethylene price increases for the domestic market of Real 150-200/mt, and Asian offers to Brazil went down $20-30/mt over last week. Because of that, even with the dollar very high at $2,00 against the local currency... the import market started to be active again," the trader said.
Braskem did not confirm a hike in polyethylene prices for June. Deals between Brazil and South Korea were heard at $1,360/mt, CFR, and $1,400/mt CFR for HDPE film.
