Market and product
Africa PP copolymer prices higher on tight availability
Buyers had already accepted a limited price hike on homopolymer PP at the beginning of the month.
“It’s not been an easy month,” said one producer. “We have increased [prices] in… Africa, but converters are trying to reject any increase as they can’t pass it on [to their customers].”
Supply has been fairly tight, particularly in the copolymer market, but demand has been flat, so a certain balance has been achieved.
High prices have deterred stocking, and inventories with buyers are thought to be very low. This has meant that those buyers that needed to buy have had to pay higher prices this month.
Lower naphtha and crude oil prices are leading to expectations of some price easing in September, but sellers are confident of maintaining current levels, as they expect demand to pick up, and their own stocks are not high.
Demand has been disappointing for sellers in August, and the expected upturn following Ramadan and subsequent festivities, has not happened.
“There are signals that demand is healthy,” said the producer. “Feedstock prices will have an impact but supply not long.”
Copolymer prices have risen above $1,700/tonne CFR (cost and freight) in many cases this week, with bids still seen in the mid- $1,600s/tonne CFR.
PP is used widely in the manufacture of household goods and packaging, as well as in the automotive sector.
