01 August 2013 11:20 [Source: ICIS news]
SINGAPORE (ICIS)--Offers for polypropylene (PP) pipe in north China increased by yuan (CNY) 200-300/tonne ($33-49/tonne) this week on concerns about lower production from Yanshan Petrochemical for August, market sources said on Thursday.
Yanshan Petrochemical plans to shut its 800,000 tonne/year naphtha cracker late this month, that will prompt production cuts in downstream polyethylene (PE) and polypropylene (PP) plants, according to a company source.
The company is the biggest producer of PP pipes in northern China.
Sinopec’s north China branch hiked its ex-works prices of PP block copolymer pipe (PPB) grade to CNY11,850/tonne, compared with CNY11,600/tonne in the previous week, a company source said.
For PP random copolymer (PPR) grade, Sinopec's prices were increased to CNY13,000/tonne EXW, up by CNY200/tonne from last week.
In turn, domestic distributors have increased their offers for PPB grade to CNY12,100/tonne and for PPR grade to CNY13,100/tonne, up by CNY200-300/tonne from the previous week.
PPB grade output in north China is expected to fall by half, according to the market sources.
($1 = CNY 6.13)
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