African PE, PP markets extend slide into May
Nigerian PP, PE markets down considerably for May
May kicked off in West Africa’s largest market, Nigeria, on a weak footing, after the market was assessed largely stable all through April. Players in the import market reported initial May offers from a major Saudi supplier with rollovers to $70/ton decreases for PE and $40-70/ton decreases for PP when compared to initial April levels. However, the landscape in Nigeria became increasingly competitive following an influx of South Korean and South African PP and PE cargoes to the market at more competitive levels as compared to their Middle Eastern counterparts. This pressured Middle Eastern suppliers into offering additional discounts of up to $100/ton on the initially announced levels.
On a related note, the country’s local producer, ELEME, revealed the new May offers with NGN39,700-40,000/ton ($86-87/ton) decreases for PE and NGN58,400-75,100/ton ($127-$163/ton) decreases for PP from April. “We are closely monitoring the global markets for a sense of direction as global sentiment remains weak. Slow demand and high inventories are also pressuring prices," a trader based in Lagos said.
Kenya’s PP, PE markets fall as Saudi major steps back
In East Africa, offers from a major Saudi producer in Kenya were more or less unchanged from April, which marked the second consecutive month of prices steadiness. However, poor buying appetite has forced sellers to concede to lower deals, and discounts of up to $80/ton for PP and $100/ton for PE were achievable on deals. Generally, players complained about the continuous inflation hikes which slow down economic growth and make it more challenging to keep their business running.
Mid-Eastern sellers backpedal in North Africa
Over North Africa, players in Morocco reported receiving new May offers with rollovers to €30-60/ton ($33-66/ton) decreases when compared to initial April levels. A Casablanca-based trader reported weak buying appetite amid bearish sentiment in the end-use market hence, sellers revised their offers again by up to €60/ton ($66/ton) later compared to the initially announced levels.
Likewise, initial May PP, PE prices in Algeria indicated rollovers from April, while the latest deals stood lower than the initial prices by $60-120/ton. “Sellers have offered more competitive prices inan attempt to trigger demand; however, purchases remained from hand to mouth amid slow overall activities,” opined a local trader.
Similarly, initial May PP, PE offers emerged in Tunisia with rollovers from April. Sellers, meanwhile, were forced to concede to lower deals given muted trading activity and up to €50/ton ($54/ton) discounts were passed on May deals.
Further bearishness ahead for June
Now, the attention has turned towards possible pricing scenarios for June. Expectations call for further price declines, given lower crude values in addition to weak global sentiment amidst slow economic growth and recession woes. All these factors keep the outlook disappointing for June
More free plastics newsPlastic resin (PP, LDPE, LLDPE ,HDPE, PVC, GPS; HIPS, PET, ABS) prices, polymer market trends, and more...
- Türkiye’s polymer markets in flux amid bullish costs, lackluster demand
- China’s import PE prices resume uptrend on ongoing cost support
- Liquidity concerns keep India’s PP, PE markets on edge
- Buyer resistance counterbalances cost pressure in China’s PE markets
- Türkiye’s PE market up in Sept as limited quotas offset muted demand
- Crude oil rally keeps China’s PP markets firm
- Europe’s PVC rebounds from nearly 3-year lows, is it a dead-cat bounce?
- Indian players see PVC prices falling further ahead
- Stats: US boosts HDPE market share in China, Saudi's sales slump sharply
- Stats: India's H1 PP imports jump, PE and PVC imports skyrocket