09 October 2013 17:28 [Source: ICIS news]
LONDON (ICIS)--African demand for polyethylene (PE) is muted as customers hold back from purchasing on the expectation of prices softening, market participants said this week.
“The market is calm, everybody is very cautious to forward firm bids. People are waiting,” a producer said on Tuesday. “Demand is very low. People are holding back as they think prices will come down.”
Following price hikes in September, some PE producers targeted modest October price increases of up to $20/tonne.
However, distributors and some producers speak of attempts to increase October prices being unsuccessful.
Lower feedstock costs and decreasing PE prices in both Europe and China suggest a reduction of prices in Africa.
Some producers have already started to lower their October offers.
A West African producer said: “Middle East producers seem to be offering some volumes at discounts.”
“People are only buying what they need, [it’s been that way for] the last 3-4 months,” a distributor in the north African market said. “[There’s a] Move down by $20-30/tonne on all grades of PE. Demand is not that good, [even] right after Ramadan.”
“People are expecting a decrease because of the feedstock [price] decrease,” the source said.
($1 = €0.74)
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