20 July 2006 10:46 [Source: ICIS news]
SINGAPORE (ICIS news)--Indonesian polyethylene (PE) and polypropylene (PP) processors had cut operating rates over the last month due to high resin costs, local importers and producers said on Thursday.
The processors had to cut production rates to curb losses, an importer said. They had not been able to pass on additional resin costs to customers and the higher costs had cut into their margins, he added, estimating that at least 30% of the local processors were running their plants at 60% of capacity.
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Indonesian producers raised prices of locally-produced injection and yarn grade polypropylene (PP) further on Thursday to $1,530/tonne delivered, which is around 6% higher from one month ago.
Indonesian producers also raised prices of high-density polyethylene (hdPE) and linear low-density polyethylene (lldPE) further on Monday to $1,520/tonne delivered, which is about 4.8% higher from one month ago.
Prices of different grades of imported PE and PP rose by 2-4% to $1,250-1,320/tonne CFR southeast Asia in the month ended 14 July, according to global chemical market intelligence service ICIS pricing.
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