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(plasticsinfomart) -- Asian PP producers continue to
face margin pressure even after announcing significant increases on their new
April prices as spot propylene prices on an FOB Korea basis jumped higher over
the past week to reach their highest levels since September
2011.
PP producers are likely to face difficulty in persuading
buyers to accept another round of price increases as converters are already
offering resistance to sellers’ most recent price hikes.
Overseas PP producers active in China report that it will be difficult to
press for further price increases for now as demand is not very encouraging and
their higher initial April announcements have already been encountering
resistance from buyers. A source at a Saudi Arabian producer complained, “We
would like to ask for another round of price increases but cannot do so for now
as we are struggling to conclude deals at our current price levels. The bids we
are receiving from our customers stand well below our new April prices.”
Another Saudi Arabian producer expressed a bearish outlook for the
coming month even after they managed to conclude some deals at their new April
prices. “We feel that prices may not be able to maintain their current levels as
demand is not all that strong and buyers will offer strong resistance to another
round of price hikes,” a producer source reported. |
