African players receive June PP, PE offers amid seasonal lull
In Egypt, the Saudi major announced its June PP and PE offers last week with rollovers from May, with a source from the producer noting, “We believe that our new offer levels have largely met buyers’ earlier expectations, which were based on weak market conditions and slow demand during Ramadan.”
Some Middle Eastern producers approached Egypt with rollovers to slight hikes of $10-20/ton for June, with a trader commenting, “Sellers slightly increased their offers as a result of limited HDPE supplies and high propylene costs. Although buyers are resisting proposed hikes amid low consumption, we expect an upturn in demand in the upcoming month in line with the start of the agricultural season.”
In the country’s local market, EPPC announced its June PP prices with rollovers for the second month in a row. “Despite unsupportive demand, we keep our offers stable on the back of higher propylene prices,” a producer source said. New offers from ETHYDCO came with rollovers to decreases of $7-39/ton while SIDPEC applied rollovers on its new PE offers for the third month in a row. “Market sentiment is weak due to Ramadan. We hope to see better demand in the upcoming weeks,” said a producer source.
In other North African countries, including Tunisia, Algeria and Morocco, players also received June PP and PE prices with rollovers to decreases from May. An Algerian trader noted, “A major Saudi producer’s new offers indicate rollovers to $10-60/ton decreases, which came in line with our expectations amid traditionally slow trading during Ramadan.”
Meanwhile, in Kenya, June PP and PE offers from the Middle East and India came with rollovers to decreases of up to $50/ton from May. A Kenyan trader opined, “Demand has been negatively impacted by the rainy season while cash flow problems continue to hamper trading. Meanwhile, good availability in the country is unlikely to support any price hikes.”
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