China more attractive than Africa to Middle East PE producers

07 August 2013 16:51  [Source: ICIS news]

LONDON (ICIS)--China is currently considered a more attractive market than Africa when looking to sell polyethylene, a Middle East producer said on Wednesday.

“There are markets that are easier to sell to than Africa,” the source said. “There are higher prices [in China], lower freights and bigger margins to China, especially for LDPE [low density polyethylene]. If China is buying, we'd be crazy not to sell to it.”

The source added that it’s also easier to do business with China than with Africa, and that African orders are smaller than Chinese ones.

LDPE prices have increased in China because of maintenance at plants in Thailand and Malaysia, and China itself tightenening supply.

A distributor said: “China is holding [up, price-wise] – if anyone is under pressure to sell, they'll sell to China [as they’ll get higher prices].”

A second distributor noticed a lack of enthusiasm from Middle East producers selling to Africa: “They're not rushing to sell [to Africa]. They always work at peak capacity. Maybe they're selling a lot in China.”

By: Jo Pitches
+44 208 652 3214

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