09 December 2011 05:13 [Source: ICIS news]
By Ong Sheau Ling
Spot prices of PP raffia/injection for December shipments were at $1,320-1,350/tonne (€990-1,013/tonne) CFR (cost and freight)
A Saudi major has reduced its offer for December parcels by a total of $90/tonne over three weeks to $1,330/tonne CFR Karachi, LC (letter of credit) 90 days, for raffia/injection on 7 December, Karachi-based traders said.
Wide-spec raffia materials were offered by the Saudi major at $1,290/tonne CFR Karachi for December cargoes, they added.
The producer was trying its best to push sales amid a build-up of inventories at the Dammam port,
An Indian PP maker offered PP raffia/injection at $1,370-1,420/tonne CFR
Following that, three other
“Offers have been decreasing week by week for December cargoes. This is not a good sign,” a Karachi-based trader said.
“The downstream demand here is just moderate, but the supplies are too much. Prices can’t hold,” another Karachi-based trader said.
On 2 December, the average weekly PP raffia/injection prices were at $1,365/tonne CFR China, down by $20/tonne from the previous week, according to ICIS.
“Many of the sellers have gradually offloaded their high stock levels. So, sooner or later, the producers should stop dropping their prices,” a Saudi PP maker said.
“The outlook [is] still uncertain, but we do agree that there are no strong bullish factors to boost prices for January cargoes,” another Saudi market said.
($1 = €0.75)
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