Pakistan LDPE film offers rise $30-50/tonne on tight supply

02 August 2013 10:16  [Source: ICIS news]

SINGAPORE (ICIS)--Spot offers for August low density polyethylene (LDPE) film in Pakistan rose by $30-50/tonne (€23-38/tonne) from July amid tightening supply in Asia, Karachi-based market sources said on Friday.

August LDPE film is being offered at $1,480-1,500/tonne CFR Karachi, they said.

“Prices rose quite substantially in such a short space of time,” a Karachi based trader said.

Middle Eastern producers are selling more spot material to China, India and South East Asia, where LDPE prices are rising following the unplanned shutdown of a 300,000 tonne/year plant in Thailand.

Supply is likely to tighten further in Asia, with Malaysia’s Petlin planning to shut its 255,000 tonne/year LDPE plant in Terengganu on 1 September for turnaround.

“It is a double whammy for us. Supply will continue to be tight for a few months and producers will be free to increase prices at will,” one of the Karachi-based sources said.

($1 = €0.76)

By: Muhamad Fadhil
+65 6780 4356

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