Africa PP market awaits May price announcements

23 April 2014 17:10 Source:ICIS News

LONDON (ICIS)--The African polypropylene (PP) market is awaiting Middle East producers’ May price announcements, which are expected within the next few days, participants confirmed on Wednesday.

Some producers will target price hikes because of supply shortages stemming from planned and unplanned maintenance in the Middle East and Asia, and low stocks at African converters’ warehouses.

“We haven't announced [May prices targets] yet, it’ll be Thursday or next week,” one producer said regarding homopolymer raffia.

“We’re planning an increase. We saw the price of oil is stable, China [prices] is moving [upwards]. [Africa] prices will increase $20-30/tonne.”

The source added that nobody will resist the price hikes as stocks are low throughout the chain, following many weeks of hand-to-mouth buying.

A distributor agreed that May prices will go up but added supply shortages are not as severe as those in the polyethylene market.

The distributor expects May hikes of $15-25/tonne.

By Jo Pitches