African PP, PE markets fully head north in September
Price rally persisted in West Africa
In Nigeria, the largest African market, PE and PP offers from a major Saudi producer indicated increases of $10-50/ton and $40-50/ton respectively over the latest August levels. This marked the second month of consecutive hikes.
According to market sources, the overall trading activity in the country remains below average with players voicing their concerns amid high inflation rates and unfavorable economic conditions. According to media sources, the Nigerian naira has recently experienced a renewed significant loss of 7.08% against the USD.
ELEME hiked local offers, reached all-time highs for PE
Nigeria’s local producer, ELEME, announced NGN40,000-71,200 /ton ($53-94/ton) increases for PE and NGN 74,800-86,000/ton ($99-114/ton) increases for PP as compared to latest August. According to data from ChemOrbis Price Index, ELEME’s PE prices have reached their highest since ChemOrbis started tracking price indices.
Kenya rebounded from August 3-years lows
In Kenya, the largest economy in East Africa, September PP and PE offers from a Saudi major indicated around $20-30/ton increases over latest August levels, after remaining flat throughout August at 3-year lows. According to local sources, poor final-sales and harsh economic conditions kept purchases at a bare minimum.
Activities subdued in Morocco on devastating earthquake, US offers absent
In North Africa, players in Morocco received September offers from Middle Eastern suppliers with €50/ton ($54/ton) increases for PP and €40/ton ($43/ton) increases for PE when compared to August levels, whenplayers achieved discounts of €30-50/ton ($32-53/ton) for PP .
“US PE offers, which usually offer competitive edge against Middle Eastern origins, were absent this month amid suppressed activities given the fatal earthquake that hit the country earlier this month,” a distributor stated.
Hikes failed to stir interest in Algeria, Tunisia
In Algeria, Middle Eastern suppliers revealed their September offers with $50/ton increases for PP and $30-50/ton increases for PE when compared to initial August levels.
A trader based in Algiers said that prices were largely in line with their expectations but also noted activities were slow given a growing buyers’ resistance toward higher prices.
Likewise, September PP and PE offers in Tunisia were announced with increases of €20/ton ($21/ton) as compared to August levels. “We are holding our purchases for the time being as trading activity remains below average,” opined a local source.
October outlook gets blurry
Although no major changes are anticipated until the end of September after prices firmed up in most of the African polyolefin markets, players are highly concerned about the sustainability of this upturn. Dwindling downstream markets amidst local currencies deflation against the USD and mounting inflation keep hikes attempts under check in the face of hiking energy costs.
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