North China PP pipe offers up CNY200-300/tonne on supply concerns

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)

By: Doreen Zhao

AddThis Social Bookmark Button

For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.

Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.

Printer Friendly

Get access to breaking chemical news as it happens.
ICIS Global Petrochemical Index (IPEX)
ICIS Global Petrochemical Index (IPEX). Download the free tabular data and a chart of the historical index