US polyethylene was unworkable into Colombia as Asian prices remained at a steep discount, sources told Platts on the sidelines of the 2011 Brasilplast conference in Sao Paulo, Brazil, this week.
Sources said that US HDPE film offers were at an over $200/mt premium to Asian offers. More specifically, US offers were heard as high as $1,850/mt CFR Cartagena this week while offers from Asia were as low as $1,600-1,640/mt CFR Buenaventura.
Other grades of polyethylene saw similar discrepancies, though not quite as wide. LLDPE was heard offered from the US at $1,820/mt CFR Cartagena while offers from Asia were heard at $1,675/mt CFR Buenaventura. LLDPE offers from Brasil were heard at $1,630/mt CFR Cartagena. LDPE from the US was heard offered at $1,840/mt CFR Cartagena while Asian offers for the same product were at $1,680/mt CFR Buenaventura.
Sources said that buyers were largely disinterested in US material due to the high price levels. "My buyers have almost given up on the US," a trader said. "They are looking more and more at Asia since the prices are so much lower there," he added.
Sources anticipated little change in the HDPE market as sellers had no interest in export cargoes given strong domestic pricing.
Meanwhile, producers in the US were still pushing for an increase of 5 cents/lb in May. However, negotiations were ongoing amid mediocre demand and tight supply.
