05 August 2011 05:29 [Source: ICIS news]
SINGAPORE (ICIS)--South Asian prices of high density polyethylene (HDPE) are expected to increase further because of a shortage in Iranian imports, industry players said on Friday.
The number of Iranian exports into south Asian countries, such as ?xml:namespace>
Two Iranian companies are producing pipe grade material, while four others are producing film grade material until 20 August (please see table below) to meet the firming demand.
“Looking at the short Iranian supply, we are certain that [prices for] September will be higher,” a Karachi-based trader said.
On 5 August, prices of HDPE film were discussed at $1,450/tonne (€1,030/tonne) CFR (cost & freight)
The supply of Iranian HDPE film into
As a result, imports of the material from these regions for August were immediately wiped out last week.
There were few fresh offers for shipments in August this week as both southeast Asian and Middle Eastern producers have mostly sold out for the month.
The tight availability of HDPE film from
Supply from the Middle East is short because producers in the region have reduced their operating rates as a result of a water and gas shortage, and additional allocations to
Prices of HDPE film are expected to be at $1,500/tonne CFR Karachi/Mumbai by the end of August for shipments in September, according to buyers based in south Asia and producers based in the
Some market players said they are they are not expecting prices to increase further because of the sharp declines in crude futures and US equities during overnight trade, which were caused by fears of an impending double-dip recession.
Production status of HDPE plants in
HDPE film prices in Asia in July 2011
($1 = €0.71)
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