African and Middle Eastern players wait for August PP, PE prices
A plastic end product manufacturer operating in Nigeria said, “Overall demand is very slow in the country given the local elections in some states. Players generally expect a softer outlook for August while the depreciation of the Nigerian naira against the US dollar is also weighing down the market. Even if August prices come lower as we expect, we still do not think that trade will be vivid since the depreciating naira will continue to negatively affect purchases. At the moment, players appear to prefer to meet their needs from the local producer ELEME as they find their prices more stable. However, players cannot be sure of what ELEME’s August pricing policy will be. The country’s political situation is still not stable and buying interest is not expected to improve greatly after the elections.”
A trader operating in Saudi Arabia noted that the new August announcements are yet to be made. “Players are just starting to return to their desks from the holidays and the market state is not clear now. We are expecting to see new prices as of the middle of next week. In general, expectancies centre on decreases of around $100-150/ton. Prices in Saudi Arabia have been higher than prices offered in other global markets and we anticipate some large decreases to compensate for this gap. Meanwhile, overall demand remains slow following the Ramadan holiday, but is likely to pick up a bit in the coming days. At the moment, most players are adopting a wait-and-see stance prior to the new announcements.”
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