Africa PE market expecting May price hikes

23 April 2014 16:58 Source:ICIS News

Expect riseLONDON (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.

By Jo Pitches