Mexican polypropylene producer Indelpro decreased its June offer prices for the domestic Mexican market 7 cents/lb ($154/mt), on impending lower propylene prices, weak demand in May and competitive offers from Asia, a company source said Tuesday.
"Asian prices are coming very aggressive to Latin America and other Latin producers are reducing the offer prices for this month," said the company's source.
After the decrease, Indelpro's offers for the Mexican domestic market were heard at 1.19/lb DDP bagged for homo film, $1.18/lb DDP bagged for homo raffia and injection, $1.20/lb DDP bagged for co-polymer impact.
Mexican polypropylene offers for the export market to Andean countries and Central America went down $200/mt and were pegged at $2,020/mt CFR for homo raffia and injection and at $2,100/mt for co-polymer.
Even with the drop in prices, Asian offers to Peru were at least $200/mt lower at $1,800/mt CFR for homo, $1,820/mt CFR for co-polymer.
On the propylene front, Mexico's domestic price is tied by formula to the US Gulf contract price. The US CP was still under negotiation but sources said the contract was likely to fall more than 10 cents/lb.
