Pakistan’s spot PP prices slump in sluggish market

27 May 2011 11:11  [Source: ICIS news]

SINGAPORE (ICIS)--Spot polypropylene (PP) prices fell by $60-70/tonne (€42.60-49.70/tonne) in the Pakistan market, triggered by continued weak buying interest and softer upstream propylene and energy prices, industry sources said on Friday.

On Friday, spot raffia prices were discussed at $1,640-1,660/tonne CFR (cost & freight) Karachi for June shipments, down by $60-70/tonne week on week.

Weak demand and softer prices in the key China market depressed buying sentiment in Pakistan, sources added.

Early this week, a major producer from the Gulf Cooperation Council (GCC) offered its June cargoes at $1,670/tonne CFR Karachi for raffia and $1,680/tonne CFR Karachi for injection, LC 90 days.

However, the producer reduced its offer to $1,650/tonne CFR Karachi for raffia, LC (letter of credit) 90 days, after a second GCC-based maker announced its offers for June shipments at $1,645/tonne Karachi, LC 60 days.

Two other producers from the GCC offered their June parcels at $1,660-1,670/tonne CFR Karachi for raffia, LC 90 days. Players are expecting them to make reductions next week in the presence of other lower offers.

A fifth maker from the GCC offered its June cargoes early this week at $1,700/tonne CFR Karachi for raffia, LC 90 days, but it planned to make a downward adjustment in line with the remaining GCC offers.

An Indian producer nominated offers for its June raffia lots at $1,690/tonne DAP (delivered at place) Attari, but this price level was firmly rejected by converters.

Despite several announcements of offers for June shipments, converters do not have urgency to settle business, as they are expecting prices to decrease further next week.

Exporters to Pakistan include SABIC, National Industrialisation Co (TASNEE), Advanced Polypropylene Co (APPC), Oman PP, Reliance and Indian Oil.

($1 = €0.71) 

For more on polypropylene, visit ICIS chemical intelligence

By: Ong Sheau Ling
+65 6780 4359

AddThis Social Bookmark Button

For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.

Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.

Printer Friendly