28 August 2013 17:00 [Source: ICIS news]
LONDON (ICIS)--Faced with higher feedstock costs and the expectation of demand picking up in September, some producers of polypropylene (PP) for the African markets said on Wednesday they are targeting price hikes next month.
A homopolymer raffia producer said: “We confirmed an increase $40-60/tonne [€30-45/tonne] maximum [from August levels]. [It’s because of] Higher feedstock costs, plus demand is expected to go up, after decreasing in August for the [Eid] holiday. Oil prices are high because of Egypt & Syria.”
“We released [our offer prices] for September, we increased by $30-50/tonne,” a producer of block copolymer said. “It’s [because of] higher feedstock costs, plus we expect demand to be better than in August.”
The source added that prices in Europe have increased, and that crude oil prices have soared because of the civil unrest in Syria.
Another producer is targeting a price hike of $40-50/tonne for both homopolymer raffia and block copolymer, while a third is yet to make a decision, feeling it is too early to accurately judge demand.
However, distributors have said that during recent weeks market conditions do not support a price hike, and buyers will resist any increases.
A producer said on Tuesday that African demand is still lacklustre, and buyers are holding back.
($1 = €0.75)
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