11 September 2013 16:05 [Source: ICIS news]
LONDON (ICIS)--September prices for polypropylene (PP) in the African markets were assessed by ICIS as stable to higher on Wednesday, as a result of producers' price hikes.
The average increase was $20-30/tonne (€15-23/tonne) from August levels.
“Prices are higher, by $20-30/tonne,” a producer of homopolymer raffia said. A distributor said.“There’s an average increase of $30/tonne.”
Higher feedstock costs are the main reason for producers raising PP prices.
Crude oil prices surged towards the end of August as the prospect of western nations intervening in the crisis in Syria invoked fears of the crude oil supply from the Middle East being disrupted.
PP price hikes in other regions have also been a factor.
In Europe producers are targeting September price hikes €20-30/tonne above the €60/tonne increase of the monomer price.
In China, PP prices are facing upwards pressure because of higher feedstock costs and bullish market sentiment.
However, African demand has not picked up to the extent expected after Ramadan and holidays.
Last week at least two producers originally targeting PP hikes of $40-60/tonne had to revise their September price targets downward by $20-30/tonne because of resistance from buyers.
One theory is that market uncertainty stemming from volatile crude oil prices could be deterring anything more than hand-to-mouth buying.
($1 = €0.75)
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