Polyethylene offer prices to Brazil, which have been falling in recent months, could go down $50/mt this week, traders in the Brazilian market said Monday.
"With the petroleum prices going down everywhere and naphtha prices dropping in China and Europe due to economic problems, we don't doubt the polyethylene offers from US, Asia and Europe are going to be reduced again," a Brazilian trader said.
US had the lowest offers in the Brazilian market last week at $1,280/mt CFR for HDPE film and LLDPE butene and at $1,250/mt CFR for LDPE film.
Asia was offering to Brazil last week at $1,310/mt CFR for LLDPE butene, $1,400/mt CFR for HDPE film and $1,360/mt CFR for LDPE film.
Bids in the Brazilian market last week were around $1,250/mt CFR for HDPE film and LLDPE butene and $1,220/mt CFR for LDPE film.
"We really believe the international polyethylene prices are going to continue to go down and reach levels of less than $1,100/mt in July, and because of the expectation, many resin buyers in Brazil are purchasing only the minimum necessary at the moment," a second trader in Brazil said.
