Braskem Adjusts Domestic Prices for HDPE Injection

Brazilian petrochemical producer Braskem is adjusting domestic pricing for two grades of high-density polyethylene, while rolling over prices for all other grades of PE and polypropylene, a company source said Friday.

HDPE injection pricing will rise by about Real 100-150/mt (around $32-$48/mt), and HDPE film pricing will decrease by about Real 75-100/mt (around $24-$32/mt), the source said.

All price movements are approximate and include the standard Brazilian taxes PIS and COFINS, the source said.

Braskem attributed the price movements to a reaction to international prices, the source said.

It was not immediately clear whether Braskem would also adjust accordingly its prices for South American export markets.

Some Brazilian market sources had been expecting Braskem to cut prices on all grades of PE to start July, citing softening global prices. When Braskem rolled over domestic prices to start the month, there was still some expectation for at least a reduction for LDPE, given the gap between its pricing and that of LLDPE, sources said.

An adjustment finally came last week, when Braskem cut domestic prices for its low-density polyethylene by Real 100/mt (around $32/mt).

Domestic Brazilian PE was last assessed by S&P Global Platts on Wednesday, with LDPE at Real 5,425/mt, LLDPE at Real 5,175/mt, HDPE blowmolding at Real 5,125/mt, HDPE film at Real 5,075/mt and HDPE injection at Real 5,425/mt. All assessments were made on a delivered Sao Paulo basis.