18 September 2013 17:15 [Source: ICIS news]
LONDON (ICIS)--Business in the African polypropylene (PP) market is muted while buyers await the announcement later this month of producers’ October price offers, participants said on Wednesday.
“There’s very weak demand accross Africa,” a distributor said. “Customers believe prices will come down [in October]. They’re waiting.”
Crude oil prices have softened to some extent following the seemingly reduced likelihood of western nations' military intervention in the Syrian crisis.
This in turn could have a weakening effect on feedstock costs, leading to speculation among some market participants that PP prices might be lower in October.
However, producers speak of October price rollovers or just minimal downward movements.
A producer of homopolymer raffia said: “We expect a rollover for October. We will announce October prices next week.”
“Prices are unlikely to plunge,” a producer in the west African market said. “There may be some little correction that can be expected. Unless upstream product [prices] blink, polymers [prices] are unlikely to reduce, to my belief.”
|ICIS news FREE TRIAL|
|Get access to breaking chemical news as it happens.|
|ICIS Global Petrochemical Index (IPEX)|
Asian Chemical Connections