19 February 2013 14:39 [Source: ICIS news]
LONDON (ICIS)--South Africa's Sasol has increased its March polyethylene (PE) offers for domestic business, industry sources said on Tuesday.
Sasol's March low density polyethylene (LDPE) offers are at South African rand (R) 13,750/tonne ($1,545/tonne) FD, up R800/tonne from R12,950/tonne FD in February.
Meanwhile, the company's March linear low density polyethylene (LLDPE) offers are at R14,650/tonne FD, up R500/tonne from R14,150/tonne FD in February.
The price movements are unconfirmed at Sasol, but widely confirmed by other market players in South Africa.
A South African buyer said: "Yes, Sasol has increased LL and LD a bit. Any increase affects us, because it compromises our margin. We cannot get our customers to pay more."
However, Sasol's March offers would still be below import parity levels in real terms, the buyer acknowledged.
In the import market, LDPE is being sold at higher levels relative to January at $1,510-1,540/tonne CFR southern Africa, while LLDPE is available at $1,540-1,560/tonne CFR southern Africa.
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.
Sasol and South African HDPE producer Safripol is estimated to hold 80% of the country's PE market share.
($1 = R8.90)
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