Mexico PP prices in July, August up 14%-15% from May, June on school season, increased demand for food packaging, approaching Q4 holidays
August 29, 2011
– Demand for polypropylene in Mexico rose 14%-15% in July and August over the previous two months, Platts reported Aug. 25, citing a source at Mexican resin producer, Indelpro, S.A. de C.V.
The increase was driven by the back-to-school season, growing demand for food packaging and the approaching year-end holiday season.
Prices for Indelpro's PP remained flat week-over-week for both domestic and export markets, and the market is watching the U.S. propylene market to get a sense of where PP prices may go for September.
Indelpro August domestic prices for PP were up 3 cents per pound at US$1.06/lb. delivery duty paid bagged for homo raffia and injection, backed by higher price nominations in the U.S. Gulf Coast, the Indelpro source told Platts. Prices for homo film were at $1.07/lb. DDP bagged and $1.10/lb. DDP bagged for co-polymer impact material, he added.
Indelpro’s export prices for PP shipments to Central America, Caribbean and the South American countries of Bolivia, Columbia, Ecuador and Peru increased $50 per tonne to $2,000/tonne cost and freight for homo raffia and injection, and $2,100/tonne CFR for copolymer.
The primary source of this article is Platts, New York, New York, Aug. 25, 2011.