23 April 2014 16:58 [Source: ICIS news]
LONDON (ICIS)--Middle East polyethylene (PE) producers are yet to announce May prices targets for the African market but many participants expect a hike because of planned and unplanned supply shortages, sources confirmed on Wednesday.
According to one distributor, some producers have already increased prices.
“We could not get our full volumes from [one producer],” the source said.
“They’re running at 30% capacity. Prices are already up $30/tonne. [A second producer] has limited allocations of HDPE [high density PE] and LDPE [low density PE], [they are] only [filling] 50% of allocations this month and prices are up $20-25/tonne.”
The source added a third producer is experiencing problems with its ethylene cracker and does not have enough LDPE. Its prices are up by $20-30/tonne, the distributor said.
With many participants attending the Chinaplas event in Shanghai, which runs from 23-26 April, many producers were not available for comment.
Meanwhile, one producer said it too expects HDPE price hikes.
“Our expectation for Africa in May, in some countries we will increase [prices],” the source said.
The source added that prices could increase by $10-20/tonne in North Africa, and that prices in East and West Africa will also likely rise.
Producers are expected to announce May prices within the next few days.
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