South Africa's Sasol rolls over February LDPE offers – sources

23 January 2013 16:08  [Source: ICIS news]

LLDPE film is commonly used in the film and packaging in the agricultural and food sectors, while LDPE lamination is used in coatings such as on flexible packaging and paper lamination.LONDON (ICIS)--South Africa's Sasol has rolled over its February low density polyethylene (LDPE) offers for domestic business, industry sources said on Wednesday.

Meanwhile, a rise in value for LDPE imports, as a result of tight Middle East supply, is expected to continue into next month, sources added.

Sasol's February LDPE offers are at South African rand (R)12,950/tonne (€1,097/tonne, $1,462/tonne). The price is unconfirmed by Sasol, but widely confirmed by other market players in South Africa.

In the import market, LDPE is being sold to distributors in South Africa at $1,460-1,480/tonne CFR this week. 

But LDPE import offers from a major Middle East producer are set to rise by $50/tonne in February, distributors in the country said.

Sasol's offers are on a free delivered (FD) basis, while importers have to factor in additional shipping clearance, storage and delivery costs, as well as possible fluctuations in rand-US dollar rates.

A South Africa-based importing distributor said on imports: "I think I simply won't order. It's not affordable."

A second importing distributor said: "This is going to be a year where it is going to be quite tough on [distributor] margin as a result of Sasol aggression."

(€1 = R11.8, $1 = R8.86)

By: Cuckoo James
+44 (0) 208 652 3214

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