Africa September PP prices stable to soft on lower feedstocks

LONDON (ICIS)–Softer feedstock prices and an easing of a tightness seen during the summer have resulted in stable-to-softer September spot prices in the African polypropylene (PP) market, sources said this week.

Some producers targeted a rollover from August levels but met resistance from customers.

“There’s a lot of resistance [from customers],” one Middle East producer said of homopolymer raffia prices.

“Some confirmed a rollover, but big quantities get a discount. [There’s a] $10/tonne maximum discount for east Africa and Egypt. For north Africa, it’s priced in euros, [they’re] buying in euros. They get a discount from the exchange rate [versus the US dollar].”

The producer added that its customers are buying extra in order to receive a discount.

However, distributors speak of ongoing limited demand, with some participants expected further decreases next month.

A distributor covering the market in Egypt said: “The market is so quiet as people are expecting decreases on the prices next month, so they placed the minimum possible orders.”

“Their expectations are based on weak demand, [and] the impression given by the producers, especially that they do accept to negotiate the price many times with the buyer,” the source added.