Pakistan PP jumps 5.1% on tight supply, firmer China market

22 July 2011 07:12  [Source: ICIS news]

SINGAPORE (ICIS)--Polypropylene (PP) prices in Pakistan have risen by up to 5.1% this week, driven by tight supply and firmer China market, local distributors said on Friday.

Supply from Saudi Arabia has been significantly reduced with Petro Rabigh’s 700,000 tonne/year PP facility and National Petrochemical Industrial’s (NATPET) 400,000 tonne/year facility in Yanbu running at low rates, while Al-waha’s 450,000 tonne/year unit in Al Jubail is currently shut.

Buying sentiment in Pakistan has also been lifted by firmer PP prices in China, where restocking activity is ongoing with a number of domestic polymer facilities due for maintenance in August and September, they said.

 On Friday, PP raffia prices are discussed at $1,500-1,580/tonne (€1,050-1,106/tonne) CFR (cost and freight) Karachi, while prices of PP injection grade were quoted at $1,510-1,590/tonne CFR Karachi and at $1,530-1,610/tonne CFR Karachi for isotatic PP (IPP) film, local players said.

The prices in Pakistan are $75/tonne higher week on week, according to ICIS.  

 In China, bids and offers averaged $1,550/tonne CFR for raffia on Friday.

A Saudi major had raised its offer for August raffia shipments by $100/tonne to $1,580/tonne CFR Karachi, LC (letters of credit) 90 days late on 21 July, from four days ago. Its offers for injection grade PP were at $1,590/tonne CFR Karachi, while those for IPP film were at $1,610/tonne CFR Karachi, market sources said.

The company was taking the cue from another Saudi maker that offered both raffia-and injection-grades material at $1,560/tonne CFR Karachi, LC 90 days.

Another producer based in the Gulf Cooperation Council (GCC) region plans to revise offers for August raffia/IPP film next week. It sold sporadic August lots at $1,500/tonne CFR Karachi for raffia and $1,530/tonne CFR Karachi for IPP film, LC 90 days early in the week.

Meanwhile, an Indian major offered August raffia at $1,570/tonne CFR Karachi and IPP film cargoes at $1,580/tonne CFR Karachi, LC 30 days.

Al-waha will not be offering any August material because of the outage at its plant, which may only restart in end-July.

($1 = €0.70)

Read John Richardson and Malini Hariharan’s blog – Asian Chemical Connections

By: Ong Sheau Ling
+65 6780 4359

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