17 February 2011 03:44 [Source: ICIS news]
SINGAPORE (ICIS)--Thailand’s plastic resin producers raised their price offers for different polypropylene (PP) grades by 7.8-7.9% this week on the back of high propylene feedstock prices, industry sources said on Thursday.
Inverted PP (IPP), or inflated PP film grade, was offered at baht (Bt) 55.00-55.50/kg ($1.80/kg) DEL (delivered), and PP injection and yarn grades were offered at Bt54.50-55.00/kg DEL, Bt4/kg higher from last week, local distributors said.
Propylene prices were at $1,450-1,470/tonne (€1,073-1,088/tonne) CFR (cost and freight) NE (northeast) Asia on Thursday morning.
End-users in the downstream plastics processing sector were resisting the higher offers, preferring to tap into their existing stocks rather than place new orders for PP resins, they said.
“The end-users find it difficult to pass on the additional resin costs to their downstream customers,” a local distributor said.
The higher local offers for PP injection and yarn grades yield higher import parity levels of $1,648-1,660/tonne CFR (cost & freight) Thailand, taking into account a 5% import duty.
As a result of the high import parity, a Middle East producer withdrew its February offer of $1,610/tonne CFR Thailand, the local distributor said.
($1 = Bt30.64, $1 = €0.74)
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