21 September 2011 11:12 [Source: ICIS news]
SINGAPORE (ICIS)--The ?xml:namespace>
Offers of HDPE from producers based in the Gulf Cooperation Council (GCC) region were heard at $1,560-1,620/tonne (€1,139-1,183/tonne) DEL (delivered) GCC/East Mediterranean (East Med) for October shipments, down by as much as $50/tonne. This is equivalent to $1,560-1,600/tonne CFR (cost & freight) GCC/East Med.
This decrease in offers comes after two months of stable HDPE pipe black 100 prices.
Although offers heard were lower, converters are reluctant to book fresh material because of no new orders, local players said.
“The local governments are not introducing as many housing projects as expected. [The situation] is that of 12 pipe converters running after one housing project tender,” a Dubai-based converter said.
HDPE pipe grade is a raw material in the manufacture of water and sewage pipes in housing.
Offers of Thai material were lower by $10-20/tonne to $1,660/tonne CFR GCC for October shipments late last week, but the prices were deemed too high by market players.
A South Korean producer did not offer in the soft market in the GCC region and sold significant quantities to
Market players are expecting the HDPE pipe prices to decline further primarily in line with the expected fall in upstream ethylene prices.
“The supply condition of ethylene will become better and this will weigh on the prices of HDPE pipe,” a northeast Asian producer said.
($1 = €0.73)
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