14 September 2006 03:53 [Source: ICIS news]
SINGAPORE (ICIS news)--Asian traders have reduced polymer offer prices in the key China market by up to 3.6% amid persistently weak demand, industry players said on Thursday.
Demand has weakened significantly in the past months as several regional converters had cut operating rates after failing to pass on higher raw material costs to downstream customers, traders said.
"Our transaction volumes have shrunk to 2-5 containers per deal compared with 10-15 containers in the past," an Asian producer said.
Buying interest was further dampened by weaker crude prices in the last week, one of the traders said.
The reduced offers were $1,320-$1,380/tonne CFR China for different polyethylene (PE) film grades and $1,370-$1,390/tonne for polypropylene (PP) injection/yarn grades for prompt lifting at bonded warehouse.
These grades hovered around $1,370-$1,410/tonne in the week ended 8 September, according to global chemical market intelligence service ICIS pricing.
Several regional importers were expected to hold back purchases in the hope of getting better deals in the downtrend, another Asian producer said.
However, the downtrend could be short-lived as regional supply in September and October was still relatively tight due to regional plant turnarounds, and importers were generally holding low inventories, he added.
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