Producers target June increase on PE, PP in South Africa

LONDON (ICIS)–South African polymer producer Safripol intends to hike its June high density polyethylene (HDPE) and polypropylene (PP) prices in June, a company source said on Wednesday.

“HDPE supply has been very tight and demand has been good for the past couple of months,” said the source who was looking to increase June HDPE prices by South African rand (ZAR) 1,500/tonne (€113.90/tonne), while it would seek an increase of ZAR1,200-1,300/tonne on PP, depending on the grade involved.

South Africa’s other producer, Sasol, had already indicated it would be increasing low density polyethylene (LDPE) prices by 3%, and linear low density polyethylene (LLDPE) prices by around 6%.

PE availability was widely seen as tighter than PP.

Weaker sentiment in the key China market was not expected to affect South Africa in June, but sources were keeping a close eye on price movements there, said sources.

PE and PP are used widely in packaging and in the manufacture of household goods. PE is also used in agriculture and PP in the automotive industry.

(€1 = ZAR13.17)