08 January 2014 16:46 [Source: ICIS news]
LONDON (ICIS)--A combination of high import prices for polyethylene (PE) and a further weakening of the South African rand (R) is “diabolical” for the South African market, according to a trader on Wednesday.
“I’m aware of Middle Eastern producers pushing prices up,” the source said. “$50/tonne [R533/tonne] in some cases. This combined with the rand is diabolical.”
The trader added that the rand devalued another 3.5% against the dollar during the holiday season.
“Record high market prices are already here, and now things will increase even further,” the source said.
Another distributor said: “The exchange rate has weakened further. This of course makes it very difficult for importers to get new orders, as customers will rather wait to see if the exchange rate improves, since they do not have strong demand for their products at the moment anyway.”
($1 = R10.66)
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