16 April 2014 17:39 [Source: ICIS news]
LONDON (ICIS)--Participants in the Africa polypropylene (PP) market are speculating on May prices, with many expecting producers to target price hikes in May on the back of a Chinese market rebound and supply shortages, sources said this week.
“On [African] prices, I hear China demand has picked up all of a sudden last week,” one Middle East based distributor said. “As a result all Middle Eastern [producers] are considering a $10-20/tonne price hike.”
The source named an Indian producer it says has already increased PP prices by $25/tonne, and a Middle East producer it says has hiked prices by $10/tonne.
Neither producer was available for comment.
However, buyers are expected to resist any attempts to increase May prices.
They already deem African prices too high, given limited demand.
Nevertheless, following several months of hand to mouth buying, stocks are low throughout the chain.
As a result, the consensus is that anyone urgently requiring volumes next month may have little option but to pay higher prices.
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