Weak rand beneficial to South Africa PE, PP producer - source

04 February 2014 17:11  [Source: ICIS news]

LONDON (ICIS)--The weakness of the South African rand versus the US dollar has been beneficial to a local polyethylene (PP)/polypropylene (PE) producer, it said on Tuesday.

“We've noticed less competition for us,” the producer said.

“We've exported to the UK because of the exchange rate. We've had enquiries from Brazil, more than we can supply.”

A combination of relatively low domestic prices and the weak rand has meant few international producers have recently done business in South Africa.

Two weeks ago, a Middle East producer of high-density PE (HDPE) said that South African market conditions do not make it attractive to currently sell in the region.

From an importer-distributor’s perspective, the weak rand exacerbates the expense of already-high international prices.

“Our plant is running on full capacity,” the producer added. “February will be exceptionally busy [as March prices will increase, people are buying now].”

By: Jo Pitches
+44 208 652 3214

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