Overview

The year 2009 ended on a positive note in Pakistan market with upward price movement in all grades of Polymers. Market began to reflect the higher import prices in the last 2 weeks of December’2009 however these are still below other regional markets in view of the discounted pricing by the Middle East producers who appear keen to defend their market share in Pakistan with prices that did not reflect the overall bullish sentiment in South Asia and China. Early part of January’2010 is expected to retain the momentum seen in the last few days of 2009.

Polyethylene

Prices of HDPE Film and LLDPE Film increased by Rs.1.25/lb (US$32/mt) to Rs.2.50/lb (US$65/mt) in the domestic market. Demand has been good throughout the month of December’2009. Inventory of HDPE Film is high due to arrivals from Iran and Middle East while the inventory of LLDPE is low due to delay in shipment by Arya Sassol, Iran which is likely to be shipped in early part of January’2009. Prices of HDPE Blow Molding remained at Rs.62.50/lb. (US$1180/mt on import parity).

Domestic Prices – Polyethylene

CATEGORY             HDPE FILM        HDPE INJ.          HDPE BLOW         LLDPE FILM

Local Price              Rs.63.00/lb      Rs.62.00/lb       Rs.62.50/lb.       Rs.66.00/lb

Import Parity        US$1200/mt    US$1160/mt     US$1180/mt       US$1240/mt

Import Offers – Polyethylene*

ORIGIN                     HDPE FILM           HDPE INJ.         HDPE BLOW       LLDPE FILM

Sabic                          US$1260                US$1220           US$1240             US$1280

Tasnee                       US$1240                      —–                US$1230                  —–

Sasol/Arak              US$1180                US$1150            US$1150             US$1220

CP-Q Chem               US$1260                      —–                US$1230                  —–

Equate                       US$1260                      —–                       —–                      —–

*All prices pmt cfr Karachi. LC Terms : Sabic/Q-Chem : LC90 days. ARYA SASSOL/ARAK : LC Sight

Polypropylene

Robust demand was seen in the last two weeks of Dec’2009 for PP Raffia due to ongoing season for processing of Sugar and Fertilizer. Demand is expected to be good in the months of January and February’2010 for Raffia and Film grades. Prices rose by Rs.3.0/lb ($78/mt) for PP Raffia and Injection in the domestic market while prices of PP Block Copolymer rose by Rs.3.50/lb.($90/mt) on the back of steady demand and higher offers emerging from major suppliers to Pakistan market. Import offers for PP Raffia and Injection were US$1160/mt cfr with 90 days credit from Sabic and Tasnee for January’2010 shipment while offers ex-Reliance, India were at US$1155/mt cfr.

Domestic Prices – Polypropylene

CATEGORY                PP Raffia                PPH Inj.                 PP Film                   PP Copolymer

Local Price                 Rs.61.00/lb.        Rs.61.00/lb.       Rs.62.00/lb.        Rs.65.50/lb.

Import Parity           US$1142/mt       US$1142/mt        US$1160/mt       US$1230/mt

Import Offers – Polypropylene

ORIGIN                     PP Raffia/Inj.          PP Film                 PP Copolymer       BOPP

Sabic                          US$1160                  US$1180              US$1240                  US$1180

Tasnee                       US$1160                        —–                          —–                     US$1170

Reliance                    US$1155                  US$1175                     —–                          —–

Oman PP                   US$1160                  US$1180                     —–                          —–

APPC                          US$1160                        —–                          —–                          —–

TPI                                    —–                             —–                   US$1280                      —–

Samsung                         —–                             —–                   US$1290                      —–

UMAIR PETROCHEMICALS PVT. LTD.

DATED: 4th January 2010

© Umair Petrochemicals Private Limited 2009