Braskem facing rising pressure to cut its domestic resin prices because of cheap imports, reports say; company reportedly has cut its offers for PP grades, PE, respectively, by US$200/tonne for November-October and by US$160/tonne

, November 12, 2013 () – Brazilian petrochemical company Braskem (NYSE: BAK), the only producer of polypropylene (PP) and polyethylene (PE) in the country, is facing rising pressure from cheaper imports to cut its domestic resin prices, according to reports.

Platts said that Braskem has already cut its offers for PP grades by US$200/t for November from October, and its PE offers by US$160/t.

Braskem has not made any formal notification of a cut in its resin prices for November.

Local distributors said they are not buying Braskem's resins at current prices, as they are not competitive with imports.

Last week, Braskem said that its market share in the Brazilian PP and PE market increased by two percentage points in the third quarter of the year compared to the second quarter, to 75%.

One factor that could support Braskem's resin prices at their current level is the appreciation of the US dollar against the Brazilian Real over the course of the last month, which has reduced the competitiveness of imports.

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