Market and product

December polypropylene (PP) offers to Pakistan declined again this week amid weak response to previously announced prices, market sources said on Thursday.

A key Gulf Cooperation Council (GCC)-based supplier lowered its offers for PP raffia/flat yarn and injection grades to $1,040/tonne CFR Pakistan, down $20/tonne from its previous prices, a source close to the supplier said.

This was the second price reduction this week amid strong buyers’ resistance.

For PP film, the supplier also revised down its offers by another $20/tonne to $1,070/tonne CFR Pakistan.

Near-term uncertainty in PP prices capped buyers’ response to the offers during the week.

A second GCC-based supplier quoted on Wednesday offers for December shipments at $1,040/tonne CFR Pakistan.

This supplier offered PP film cargoes at $1,070/tonne CFR Pakistan and PP fibre and BOPP cargoes at $1,060/tonne CFR Pakistan, market sources said.

A third seller floated its acceptable selling prices at $1,030/tonne CFR Pakistan on LC (letter of credit), at sight, basis. In the previous week, it had sold December lots at $1,040/tonne CFR Pakistan.

Pakistani PP importers have taken a wait-and-see stance following weak demand in India, which is experiencing a cash crunch, and uncertainties over the Chinese market after a recent strong run, market sources said. - ICIS