Brazilian polyethylene offers to Mercosur (Paraguay, Uruguay and Bolivia) had an offer price reduction of $30-50/mt for June pressured by very competitive Asian prices going to the area.
"It's a readjustment made to be more competitive in the international market," said the source.
LDPE film Brazilian offer had the largest reduction, $50/mt down over May, while HDPE had a $30/mt drop over May.
After the decrease, Brazilian LDPE offers to Paraguay, Uruguay and Bolivia for June were heard around $2,180/mt CFR for film and $1,730/mt CFR for HDPE injection, blowmolding and film at $1,730/mt CFR.
For the LLDPE butene, the company decided to keep offers stable due to the scarcity of the resin in the Latin market.
"We heard Dow's LLDPE plant in Argentina is still not working at full capacity, and US is short on exports as well," added the source.
The June Brazilian LLDPE offer was at $1,750/mt CFR for butene and at $1,770/mt CFR for hexene.
However, even with the reduction, Asian offers to the Mercosur were heard at lower levels, at $1,620/mt CFR for LLDPE butene and at $1,580/mt CFR for HDPE film and at $1,850/mt CFR for LDPE film.
For Argentina, Brazil's polyethylene offers were going to be at the same May levels due to the price control agreement with the country's government.
"We had some offer price readjustment for Argentina during May, but now the offers will be flat over May," said the source.
Brazilian LDPE June offer to Argentina was heard at $2,250/mt CFR while HDPE injection, blowmolding and LLDPE butene at $1,980/mt CFR.
Polypropylene offers to Mercosur were stable because of the high raw material price but with signs to decrease $100/mt for July.
Brazlian PP offers to Paraguay, Uruguay and Bolivia were at $2,050/mt CFR for homo raffia, $2,080/mt CFR for injection and film and at $2,100/mt for co-polymer.
Asian June offers to Mercosur were at $210-230/mt lower at $1,820/mt CFR for homo and at $1,890/mt CFR.
