Petrotahlil — Latin American polymers see fourth straight week of record low prices.
Most Latin American polymer prices hit the lowest point since S&P Global Platts began assessing them, the fourth consecutive week of historic lows. Domestic Brazilian and Argentinian prices were the exceptions to the trend.
The low were for all grades of high-density polyethylene, linear low-density polyethylene, PVC and for some polypropylene regions.
Traders said they believed prices will continue to fall in the coming weeks if demand doesn't pick up.
"With lockdowns across the region, activity is only related to food and health sectors, so a lot of products have no demand at all, especially injection grades," a regional trader said.
HDPE Brazil CFR HDPE film, blowmolding and injection prices Wednesday again dropped to new lows since Platts started covering this market, in 2011, at $720/mt, $700/mt and $690/mt, respectively.
LLDPE Brazil CFR were assessed at $700/mt and reached for the fourth consecutive week, the lowest level since Platts started covering this market in 2011.
Platts assessed Brazil polypropylene at a record low homopolymer were at $850/mt and copolymer prices at $900/mt.
The polypropylene market has seen distinct scenarios. Its main consumer market, the automotive, has been shutd own, while N95 masks and other medical equipment require PP for its making, sources said.
On the West Coast of South America, since Platts started the assessments in 2010, prices for HDPE film, injection and blowmolding were seen for the third consecutive week at historical low levels Wednesday, at $710/mt, $680/mt and $690/mt, respectively.
West Coast South America LLDPE prices were assessed at $690/mt, again a record low for the assessment, started in 2010.
On polypropylene, WCSA saw record low levels for both homopolymer at $830/mt and copolymer prices at $910/mt.
PVC prices also saw their lowest prices since Platts started assessments in 2010 for West Coast South American and 2011 for Brazil. Prices for the region were assessed at $600/mt, and for the Brazilian market at $670/mt.
"For PVC the scenario is not bright. Demand for this product is highly attached to the construction sector, mostly offline in Latin America," a US trader said. "We are seeing a lack of deals and may see even lower prices in the coming weeks."
Colombia's domestic market saw a record low for all HDPE grades: $910/mt for film and $880/mt for injection and blowmolding. The country saw again a record low of $880/mt for LLDPE. The assessments started in 2017.
Mexican domestic delivered prices were seen at its historical low for HDPE film at $725/mt, the same price as last week, HDPE injection at $715/mt and blowmolding at $725/mt. LLDPE prices were assessed at $695/mt, also the same value for the past week and lowest number since it started in 2016.
Unchanged week on week, FOT exports from Brazil to the Mercosur are still on their lowest historical prices for all HDPE grades and LLDPE. The assessments started in 2015.
The domestic markets of Argentina and Brazil saw no record lows for any grades.
Low-density polyethylene saw no record lows on Wednesday in no region.
Follow us on twitter@petrotahlil