Published On: Fri, Apr 24th, 2009

Ineos HDPE Bmldg auction done at 39.7 cents/lb, late May loading

Ineos high density blow molding PE auction was done at 39.7 cents/lb delivered in railcars to Houston for late May loading, industry sources said Thursday. Fifteen railcars were up for auction, but it was not reported how many were actually sold.

When put in bags, the price would be 42.2 cents/lb or $930/mt FOB Houston. Traders said the price could work for China even though the material would not be loaded until the end of May for arrival in Asia in late June. “With China bidding at $1,050/mt and freight at $75/mt, there’s profit to be made,” an exporter said. The Asian market was the only area that could accept such a price, sources said, as the Latin American markets were not yet ready to bid to same level as China. Other traders said it was too risky given the far out loading time, but if a letter of credit was secured from the buyer some of that risk could be mitigated. Ineos’ previous blow molding auction was done at 38.7 cents/lb in railcars on April 9.