28 October 2011 09:33 [Source: ICIS news]
By Ong Sheau Ling
Prices may continue falling amid an oversupply of polymers in the south Asian country, they said.
For cargoes coming from the Gulf Cooperation Council (GCC), deals were heard settled this week at $1,380/tonne CFR (cost and freight)
Cargoes of linear low density PE (LLDPE) films of GCC origin have also exchanged hands at $1,240-1,260/tonne CFR Karachi, while high density PE (HDPE) film cargoes were also traded at $1,280-1,330/tonne CFR Karachi, they said.
For the week ended on 21 October, ICIS reported LDPE film at $1,440-1,480/tonne CFR Karachi, $1,240-1,270/tonne CFR Karachi for LLDPE film, $1,300-1,350/tonne CFR Karachi for HDPE film and $1,400-1,440/tonne CFR Karachi for PP raffia.
“Discussions for November cargoes are almost closed. Moving ahead for December parcels, the price outlook is still looking bleak,” said another Karachi-based trader.
“There are too many unpredictable factors affecting the macroeconomic global situation. Unless the fear of the eurozone crisis is erased, we are certain to say PE, PP price fall will stop,” another Karachi-based trader said.
GCC-based producers had lowered their offers this week to draw buyers, whose price ideas were largely on par with the values quoted in the leading
“Initial offers announced for November cargoes last week did not meet much buying interest. As a result, several producers reduced their offers this week,” a Karachi-based trader said.
China PE, PP prices have tumbled in the past few weeks to levels which were much lower than the October settlements in
Producers offering cargoes to
no buyer would come forth, particularly since the south Asian country remains in oversupply of polymers, Karachi-based traders and converters said.
“Middle East producers did not sell as much quantities to
Congestions at the Dammam port in
Pakistani traders and converters were initially not eager to initiate discussions because of more than sufficient stock levels amid a flat downstream market.
“Improved LLDPE futures in
“Whether this is sustainable and will lend support to the PE, PP resins prices, it is still questionable,” said another key
($1 = €0.70)
Read John Richardson and Malini Hariharan’s blog – Asian Chemical Connections
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