18 June 2013 08:35 [Source: ICIS news]
MUMBAI (ICIS)--Polypropylene (PP) and polyethylene (PE) producers in the Gulf Cooperation Council (GCC) region are expected to offer fewer cargoes to south Asian end-users in the coming weeks amid strong Middle East festive demand, Indian market sources said on Tuesday.
“GCC producers will offer more cargoes to the Middle East region because of good sales before [the Muslim fasting month of] Ramadan and [the Muslim festival of] Eid-ul-Fitr. So, they will reduce offer volumes to India [and] Pakistan,” according to a Mumbai-based trader.
The GCC region comprises Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates (UAE).
The reduced volume of offers may exert upward pressure on local PE prices in India but not PP, according to another Mumbai-based market player.
“Local producers may increase list prices should there be a sudden shortage in PE material. There is an oversupply of PP in India, so no issues there,” the market player added.
PE and PP demand in Pakistan is traditionally strong ahead of Ramadan and Eid-ul-Fitr, so any shortage of material will likely push up near-term spot prices.
Additional reporting by Malini Hariharan
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