African players receive more Middle Eastern Feb PP, PE prices
In Egypt, Saudi and Kuwaiti producers issued their new February prices. A Kuwaiti producer’s PE prices indicate $50-70/ton decreases from January while a Saudi Arabian producer cut their PE prices by $50-60/ton and PP prices by $10-80/ton from January.
Looking at the freshly announced offers, HDPE film stands at $1110-1130/ton, HDPE b/m at $1130/ton, LLDPE film at $1100-1120/ton, PP raffia and injection at $920/ton and PPBC injection at $1010/ton on CIF Alexandria, 90 days basis.
A trader who offers these prices on behalf of Saudi and Kuwaiti producers reported, “February supplies from the Middle Eastern producers are limited. However, demand in Egypt remains weak as we receive a very restricted number of inquiries.”
In Tanzania, Saudi producers’ February PP raffia and injection offers indicated $20-30/ton decreases from January at $920-950/ton on CFR Dar es Salam, United Republic of Tanzania, 90 days basis.
A Tanzanian converter said, “Supplies are comfortable in Tanzania while demand remains limited to the urgent needs. We are not sure of the upcoming trend since prices have sort of stabilized prior to Chinese New Year holiday. Therefore, we are observing the market closely.”
In Nigeria, Saudi and Taiwanese import offers emerged in the market this week. Overall Middle Eastern PE prices were pegged at $1150-1180/ton for HDPE film, $1160-1180/ton for LLDPE c4 film and $1180/ton for LDPE film on CFR Lagos, Nigeria, 90 days basis. Meanwhile, Taiwanese PP raffia and injection offers were pegged at $990-1000/ton with the same terms.
A converter operating in Ibadan reported, “Import market trade has been slow on USD/NGN parity issues. We are only meeting our needs and additional discounts of up to $10-20/ton are easily obtainable on deals. On another note, we have started to see some improvement on our end product demand when compared to before.”
A Nigerian trader also remarked, “NGN has somehow stabilized against the US dollar but the problems when opening letters of credit at banks continue and this situation hinders import purchases. Import Middle Eastern PP offers appear limited for February and this situation has helped demand for PP to pick up a little when compared to before.”
In Kenya, a major Saudi Arabian producer’s PP and PE prices were pegged at $1160/ton for LDPE and HDPE film, at $1150/ton for LLDPE film and at $970/ton for PP film on CFR Mombasa, Kenya, 90 days basis.
A converter noted, “Overall demand has been quiet for the last couple of weeks while supplies are ample. We also see different origins than the Middle Eastern cargoes in the market and this situation forces sellers to be more competitive this month.”
In Morocco, Saudi and Qatari producers cut their new February PP and PE prices. Looking at overall offers, PE prices indicate €30-140/ton decreases while some PP prices represent around €40/ton drops.
Overall Middle Eastern prices stand at €1050-1090/ton for LDPE film, €1070/ton for LLDPE film, €1090/ton for HDPE injection, €1080/ton for HDPE b/m, €1050-1090/ton for HDPE film, €970/ton for PP raffia and injection, €940/ton for PPBC injection and €900/ton for PP film on CIF Casablanca, Morocco, 90 days basis.
A Moroccan trader noted, “Overall demand is slow and traders are still issuing decreases on their offer levels while they are open to further discounts. This situation causes buyers to be more cautious as they are anticipating further declines. Sellers are currently determining their prices case by case, depending on the purchase volume. On another note, the government’s decision to ban HDPE plastic bags will be effective as of July 2016 and this casts a shadow on the market.”
A converter also cited, “We are not interested in making fresh purchases as we still have some stocks to work with amidst our weak end product demand.”
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