Pakistan PE, PP prices slump 5% on weak crude

10 May 2011 11:56  [Source: ICIS news]

SINGAPORE (ICIS)--Polyethylene (PE) and polypropylene (PP) prices in Pakistan fell 5% from about a month ago, underpinned by weakness in crude futures, industry sources said on Tuesday.

Prices of PP raffia grade, PP film grade, high density PE (HDPE) film grade and linear low density PE (LLDPE) film grade for Gulf Cooperation Council (GCC) were quoted on Tuesday at Pakistan Rupee (PRs) 85.50/lbs ($1.01/lbs) DEL (delivered), PRs90.25/lbs DEL and PRs72.25/lbs DEL, and PRs72.20/lbs DEL, respectively, they said.

“Poor crude prices” pulled prices down, said a local trader said, adding that “PE demand is already pretty bad”.

Converters are taking in less imported PE and PP, preferring to consume current inventories as they expect prices to fall, said an industry source.

Meanwhile, low density PE (LDPE) prices were stable at PRs91-95/lbs DEL, depending on origin, on the back of tight availability from GCC.

US crude futures had a record sell-off last week, plunging by more than $17/bbl on worries over demand. At 18:00 hours Singapore time (10:00 GMT) on Tuesday, NYMEX light sweet crude was down $1.43/bbl at $101.12/bbl.

“Strong rumours of an Indian major dropping PP prices locally also dampened the sentiment here,” said another trader.

The price outlook remained bleak as converters are more cautious on fresh purchases.

“It is safer for us to remain at the sidelines,” said a converter.

($1 = PRs84.86)

By: Ong Sheau Ling
+65 6780 4359

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