Africa PP April price announcements expected this week

26 March 2014 17:19 Source:ICIS News

LONDON (ICIS)--The African polypropylene (PP) market is expecting producers to start announcing their April price offers in the next day or so, sources said on Wednesday.

At least some producers are expected to target a price rollover for April.

“[It will be a] rollover,” a Middle East producer said regarding homopolymer raffia prices. “Demand will be more challenged [in April] than March, suppliers want to move materials. It’s normal for prices to go down in Q2 [second quarter 2014], but we won't let prices go down [in order to preserve margins].”

Another source at the same company said of block copolymer prices: “I think distributors will accept a rollover. In Africa we had very good sales during March, we sold all our allocations. I expect demand in Africa to be stable next month.”

However, some distributors believe African prices are already too high and will argue for a decrease.

“I think Middle East producers [would] like to maintain [price] stability [for Africa]. They are already at a decent price level compared to China pricing,” a distributor said. “Even with freight differences, Africa pricing is reasonably high,” it added.

A second distributor said that producers are likely to announce a rollover, but may not be able to achieve it.

It said, “Producers are expected to announce rollover numbers [for April] but [may] have to renegotiate to $20-30/tonne lower for all PE and PP numbers [prices]”.

By Jo Pitches