Houston (Platts)--14Jun2011/613 pm EDT/2213 GMT
Aggressive Asian polyethylene and polypropylene offers going to Brazil in June could make Braskem rethink resin offer prices for July, industry sources said Tuesday.
In the beginning of the month Brazil's Braskem said its polyethylene and polypropylene offers for June facing a roll over in prices that were happing since May.
"If China does not come back to the market as a buyer and Asia continues to offer in low levels we have to study the offer prices for the Brazilian domestic market for July," a company source said.
Braskem's June polyethylene for the domestic market were heard at Reals 4,700/mt FOT (with pis/coffins) for LDPE film, Reals 4,350/mt FOT for HDPE blowmolding and at Reals 4,400/mt FOT for HDPE injection and film.
June Asian offers to Brazil were Reals 700-800/mt lower at $1,700/mt FOB (Reals 4,000/mt with all the taxes and freight to the port), $1,450/mt FOB for HDPE blowmolding (Reals 3,250/mt), $1,390/mt FOB for LLDPE butene (Reals 3,350/mt with all the taxes and freight).
Delivery time from Asia to Brazil was 45 days.
"We have heard Asia was starting to react as a buyer this week and so if that happen their offers could go up as well for the next month. Right now there is uncertainty in the market," added the source.
A trader in Brazil said the imports were going well with Asia this month.
"US offers were still very expensive and Asia has the best polyethylene offers in the market now," said the source.
Deal prices between Brazil and Asia in the first week of June were pegged at $1,535/mt CFR for LLDPE butene (Reals 4,180/mt with all the taxes), $1,520/mt CFR for HDPE film (Reals 4,150/mt with all the taxes).
June US offers to Brazil were at least $250/mt more comparing to the Asia levels at $1,800/mt CFR for HDPE film and at $1,700/mt CFR for HDPE blowmolding and injection.
--Paulene Camargo, paulene_camargo@platts.com
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