DOHA (ICIS)--Polypropylene (PP) suppliers in the Middle East said they may cut operating rates to arrest the price decline of resins in the region, industry sources said on Wednesday.
“We may consider cutting operating rates. The current price decline is not sustainable,” according to a source close to a major PP supplier.
New PP offers for November were quoted about $20/tonne lower than the previous month.
Suppliers said prices had bottomed out and expect offers to edge up by mid-November due to an anticipated recovery in oil prices.
However, buyers called the price revision "minimal" and expected a further correction in the coming days, citing extremely weak demand.
Further declines in global crude prices and Asian propylene offers were cited as bearish factors at a time of global price uncertainty, buyers said.
PP flat yarn prices were assessed at $1,520-1,580/tonne CFR GCC for the week ended 24 October, according to ICIS.
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