12 June 2008 08:46 [Source: ICIS news]
SINGAPORE (ICIS news)--Polypropylene (PP) imports into India touched a new record high of $2,000/tonne, with prices rising by the hour on tight supply and strong demand, suppliers and buyers said on Thursday.
This marks a 26% or $420/tonne jump from a month earlier. Prices were assessed on a CFR (cost and freight) India basis.
A PP converter said it purchased a 300-tonne raffia grade PP cargo at $2,000/tonne from a global supplier, within hours of sealing a deal for a similar sized cargo from a second global supplier at $1,956/tonne.
"The market is going crazy, and it will be impossible to pass on these costs to my own customers. But I have no option but to buy if I want to continue running my business," the converter said.
Offers were also heard at $2,050/tonne on Thursday afternoon, but no deals could be confirmed at that level.
A converter of PP film said it had booked a 400-500 tonne film grade cargo at $1,930/tonne on Tuesday, but was shocked to see offers climbing by $100/tonne in the space of two days. "If prices jump any higher, it will become impossible to run our factories," it said.
But in a situation of limited availability, buyers have no bargaining power, an end user said.
PP suppliers sought to justify the price hikes, citing high feedstock costs and rising prices in China.For more on PP visit ICIS chemical intelligence
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