03 July 2013 12:36 [Source: ICIS news]
SINGAPORE (ICIS)--Offers for July biaxially oriented PP (BOPP) grade in Dubai have declined because of weak buying sentiment, with its premium over raffia/injection grade falling by half to $10/tonne (€8/tonne), market players said on Wednesday.
A Saudi producer was heard offering raffia/injection at $1,480/tonne CFR (cost and freight) GCC (Gulf Cooperation Council), with offers for BOPP at $10/tonne higher.
For June cargoes, PP raffia/injection was assessed at $1,450-1,520/tonne CFR GCC, while BOPP was assessed at $1,470-1,540/tonne CFR GCC, according to ICIS.
“No one is buying BOPP because of weak demand fundamentals,” a Dubai-based trader said.
It remains uncertain if BOPP will regain its $20/tonne premium over raffia/injection in the coming months.
“[It’s] very difficult to tell. BOPP might even be lower than raffia one day if demand continues to be weak,” a source close to a Saudi producer said.
($1 = €0.77)
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