Mideast HDPE pipe prices roll over for December on stable market

16 November 2011 09:17  [Source: ICIS news]

SINGAPORE (ICIS)--The spot prices of high density polyethylene (HDPE) pipes for delivery in December in the Middle East have largely rolled over from the settelements in November because of unchanged market fundamentals, industry sources said on Wednesday.

The supply availability and demand situation for December cargoes in the Middle East is balanced, similar to that for November, and is expected to remain into the next quarter, market players said.

In addition, the spot prices of HDPE pipes are stable because of the halt in the price decline of the benchmark HDPE film grade product, sources said.

On 16 November, the prices of HDPE black 100 pipe grade material were discussed at $1,500-1,540/tonne (€1,110-1,140/tonne) CFR (cost & freight) GCC (Gulf Cooperation Council) for December, stable from last week, according to market sources.

There were two Asian producers who said they have nearly sold out half of their allocations for December and are targeting to begin sales for January cargoes in early December.

“We are expecting the prices of January shipments to be at around the same level as December cargoes,” an Asian HDPE resins producer said.

“The prices have been volatile this year and purchases have been on a need-to basis. However, with prices stabilising now, converters will have more confidence in buying more [cargoes],” the producer added.

The consumption of HDPE black 100 pipe grade material in the GCC region is expected to grow by about 5% in 2011 compared to 2010 because of the Arab Spring and the macroeconomic situation in the eurozone and the US, industry players said.

“Arab Spring” refers to the social and political turmoil that has occurred in many countries in the Middle East.

The growth of HDPE black 100 pipe grade consumption in the region in 2012 is estimated to be at 10-12%, with the anticipation of new projects released by local governments in the region, such as that in the waste water treatment industry in Oman, the industry players added. No further details were available.

($1 = €0.74)

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By: Ong Sheau Ling
+65 6780 4359

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