Africa PE distributors expect further prices decreases
Jo Pitches
12-Nov-2014
LONDON (ICIS)–The
majority of the Africa polyethylene (PE) market expects
prices to fall further on the back of weaker Brent crude oil
values and poor performance in the global polymer markets,
sources said this week, although one producer is said to be
clinging on to its prices from last week.
“Nobody is going to be booking,” a
distributor covering the west African market said.
“[Suppliers will] Sell a container here and there, but for
big lots these [current] prices are not workable. Look at
[the significant spread between] naphtha and ethylene prices.
That tells me ethylene [prices] is going to go down. I think
PE will take more of a tumble [price-wise].”
This source added that it is just another fortnight before December price targets are announced by producers.
“I don’t think they [Middle East producers] have sold their allocations for this month,” the distributor continued. “I won’t be surprised if the [PE] market goes down another $100/tonne.”
There have already been PE price reductions of $40-100/tonne across Africa this month, despite producers originally targeting rollovers or just minimal decreases.
Producers were not available for comment this week.
Global News + ICIS Chemical Business (ICB)
See the full picture, with unlimited access to ICIS chemicals news across all markets and regions, plus ICB, the industry-leading magazine for the chemicals industry.
Contact us
Now, more than ever, dynamic insights are key to navigating complex, volatile commodity markets. Access to expert insights on the latest industry developments and tracking market changes are vital in making sustainable business decisions.
Want to learn about how we can work together to bring you actionable insight and support your business decisions?
Need Help?