28 August 2013 17:23 [Source: ICIS news]
LONDON (ICIS)--Producers of polyethylene (PE) for the African markets have started to announce their September price offers, they said on Wednesday.
With feedstock costs having increased - crude oil futures prices have surged on speculation that western nations may intervene in Syria, which in turn is raising concerns about crude oil supply from the Middle East - and PE demand expected to improve in September, some are targeting price hikes.
One producer of PE is aiming to increase September low density PE (LDPE) and linear low density PE (LLDPE) prices by $30-70/tonne (€23-53/tonne) from August levels, depending on region and grade.
However, others are uncertain of September price targets.
“We will make a decision, we're waiting for some market info on African demand and to know what others are doing,” a second producer said.
A third producer said: “Naphtha prices are going up, but at the same time buying interest has not gone up much.”
The source pointed out that many countries’ currencies are weakening against the US dollar. This makes business difficult for importers.
Furthermore, prices in China have softened. The African market often tracks the Chinese one, albeit with a lag.
“People are looking and watching,” the third source added. “People are not buying. Though we intend to increase [prices], buying interest is low.”
($1 = €0.75)
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