11 September 2013 16:48 [Source: ICIS news]
LONDON (ICIS)--September prices for polyethylene (PE) in the African markets were assessed up by ICIS on Wednesday as a result of producers’ higher offer prices.
Prices increased by an average of $20-30/tonne from August.
“It’s around a $20-30/tonne increase, that’s the general trend,” a Middle East PE producer said.
A distributor in the west African market said: “There’s a $30/tonne increase on PE and PP [polypropylene], on average. LDPE [low density polyethylene] is a bit tighter, a $20-50/tonne increase.”
Increases in feedstock costs and higher PE prices in other regions are the main drivers of these hikes.
Towards the end of August, crude oil prices surged as the prospect of Western nations intervening in the crisis in Syria invoked fears of disruptions to the crude oil supply from the Middle East.
In China, both domestic and imported PE prices climbed last week on supply concerns.
Meanwhile, in Europe, PE producers were targeting price hikes above the €50/tonne increase in the September monomer contract price.
Producers' African September price targets varied, with some aiming for modest increases of $10-20/tonne while others recently spoke of increases of up to $50/tonne or more.
However, African demand has not picked up to the extent expected, and price hikes are limited.
It is possible that the uncertainty stemming from volatile crude oil prices could be deterring the purchase of significant volumes.
($1 = €0.75)
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