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African PP markets continue to soar

  • 06/04/2016 (09:45)
April prices have emerged on a firm note in African PP markets. The large hike requests that regional and overseas suppliers seek are justified by tight supplies and higher costs, according to players.

The Nigerian producer ELEME announced their April PP prices with a sizeable increase, which is equivalent to $176/ton, when compared to their latest March levels. This followed consecutive increases from the producer in March on the back of their limited supplies stemming from their shutdown which occurred due to a technical glitch and took around two weeks to repair.

In Kenya, players also reported receiving import offers from different Saudi suppliers with $80-100/ton increases for April on a monthly basis. “Although firmer April levels are supported by limited supplies in the region and the current bullish trend is likely to persist in the near term, buying interest may be hampered by these recent rapid hikes. Buyers are becoming somewhat cautious about new purchases,” said a regional buyer.

In Libya, some players also reported receiving a Saudi PP offer with a $60/ton increase from a month earlier. Players in other North African markets such as Algeria, Tunisia and Morocco also voiced firm expectations for the days ahead.

Given the global firming trend in PP markets and ongoing supply limitation for PP, players in Africa expect to see prices remaining on a firm track in the near term. However, all eyes are also on crude oil, which has lost ground recently. This causes jitters among players in terms of May expectations in regional PP markets.
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