17 February 2011 09:48 [Source: ICIS news]
SINGAPORE (ICIS)--Philippine import demand for polyethylene (PE) and polypropylene (PP) has been weakened by the recent hikes in resin prices, with many end-users in the local plastics processing sector resisting the higher price offers, industry sources said on Thursday.
"Many local processors are unwilling to pay higher prices for plastics resins because they are unable to pass down the additional costs to their downstream customers,” a global PE producer said.
Traders and producers have raised their price offers for different PE and PP grades by $20-90/tonne (€15-67/tonne) this week, in response to high ethylene and propylene feedstock costs, local distributors said.
Inverted PP (IPP), or inflated PP film grade, from Thailand was offered at $1,690/tonne CFR Philippines this week, $20-50/tonne higher from previous discussion levels, the local distributors said.
Middle Eastern and Asian linear low density PE (LLDPE) was offered at $1,440-1,500/tonne CFR (cost & freight) Philippines this week for shipment at the end of February or early March, $50-90/tonne higher from previous transactions, they said.
Film grade high density PE (HDPE) was offered at $1,340-1,440/tonne CFR Philippines this week, $20-40/tonne higher than previous deals, the local distributors said.
To avoid paying the higher import prices for film grade HDPE, some local plastic processors have turned to locally-produced blow moulding grade HDPE as a substitute, they said.
Locally-produced blow moulding grade HDPE was selling at Philippine peso (Ps) 66/kg ($1.51/kg) DEL (delivered) in the domestic retail market, equivalent to around $1,300/tonne CFR Philippines, local traders said. This was at least $40/tonne cheaper than import price offers for film grade HDPE, they said.
Local industry sources estimate that the Philippines consumed 300,000-350,000 tonnes of PE and 250,000-270,000 tonnes of PP last year.
($1 = €0.74, $1 = Ps43.63)
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