African PP, PE markets soften further in June
In Nigeria, local producer, ELEME, lowered its PP and PE offers by NGN20,000 ($63/ton) from its latest May offers. A manufacturer receiving new offers from the producer said that demand for their end product is slow due to the month of Ramadan while another manufacturer added that although ELEME announced lower levels for June, prices are still high and they are not supported by low demand during this time of the year.
In Kenya, new June PP and PE offers from some Middle Eastern and regional suppliers are reported with rollovers from May while a trader also received Asian homo PP raffia offers at competitive levels compared regional traders’ new offers. Players report that Ramadan, rainy season and political uncertainties stemming from the upcoming elections are weighing down on buying interest.
Similarly in Algeria and Libya, a Saudi major maintained its June PP and PE offers for June. A trader said that the sentiment is weak due to Ramadan in the midst of weak economic fundamentals.
In Egypt, initial import June PP and PE offers were revealed with rollovers to declines compared to May while deals have started to be surfaced at or close to the low ends of price ranges.
The Saudi major applied decreases of around $100-120/ton on its initial June offers after initially seeking rollovers. This was in line with expectations as Egyptian players were already finding the supplier’s offers unrealistically high.
In addition, a trader received new June offers from another Saudi producer with decreases of $30-40/ton for PE grades and stable prices for homo PP grades.
“We have good allocations for June; however, demand remains sluggish so far and we are not receiving many inquiries,” said the trader.
Meanwhile, Egypt’s local PE producer SIDPEC has also rolled over its offers for June, citing stable market activities during Ramadan.
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