19 November 2007 05:09 [Source: ICIS news]
By Prema Viswanathan
SINGAPORE (ICIS news)--Rising South Asian polyethylene (PE) and polypropylene (PP) prices are expected to chalk up further gains in the coming weeks due to strong demand and limited availability, suppliers, traders and end users said on Monday.
Prices of PE and PP rose by up to $60/tonne and $25/tonne respectively in ?xml:namespace>
“The return of Chinese buyers to the market has caused sentiment to strengthen in
Tight supply, caused by the diversion of cargoes from the Middle East and
“Inventories among traders and end users are extremely low, so it is quite possible that the supplier can conclude business close to its offers,” a Karachi-based trader said.
Across the border in
December offers for HDPE and LLDPE from
PE imports into
PE imports, however, were seen to be on the decline in October, as Asian suppliers, who had flooded the Indian market in the third quarter, withdrew as customers resisted high offers on the back of high trader inventories.
PP prices were slower to rise in
However, strong demand was expected to keep prices from declining in the next few months, suppliers said.
PP prices last Friday were at $1,415-1470/tonne CFR India and $1,425-1,460/tonne CFR Pakistan across grades, up $15-30/tonne from a month earlier.
Stronger than expected growth in the packaging segment is expected to boost Indian PP demand by 13-14% in the financial year ending 31 March 2008, from 1.5m tonnes/year in 2006-07, suppliers and traders said.
“However, the availability of abundant PP cargoes next year, after the start-up of new Indian and Middle East capacities, could dampen sentiment from the second quarter of 2008 onwards,” an Indian end-user said.
The major PE and PP producers in
Major exporters include SABIC, EQUATE and Borouge.
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