(ICIS) -- Gulf Cooperation Council (GCC) polypropylene (PP) makers announced their May offers this week at levels similar to, or at USD10-20/tonne (EUR 6.90-13.80/tonne) higher, than those for April shipments. The uptrend is a result of impending turnarounds at PP units which are expected to lower Pakistan's imports, industry sources said on Friday.
⌠Two producers are out of the market because of the upcoming turnarounds, so the market is tighter. We have no choice but to raise offers across the board, a PP maker in the GCC said.
In addition, the persistent strong upstream propylene levels at USD 1.550-1.580/tonne CFR (cost & freight) NE (northeast) Asia were of no consolation to PP makers, as their spread remains below breakeven points.
PP makers in the GCC quoted a wide range of spread of USD 150-200/tonne between propylene and PP to achieve a decent margin, which varies with producers.