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African players receive new April PP, PE prices

by ChemOrbis Editorial Team -
  • 07/04/2015 (13:37)
Players in West and South Africa reported receiving new April PP and PE offers both from Middle Eastern and local producers.

A trader operating in Lagos, Nigeria, reported receiving new April offers from the domestic producer ELEME with increases of NGN10000/ton ($50/ton) for PE and NGN16000/ton ($80/ton) for PP.

The trader reported receiving new April offers from ELEME at NGN297,000/ton ($1567/ton) for PP raffia and BOPP, NGN294,000/ton ($1551/ton) for PP injection and NGN303,000-307,000/ton ($1598-1619/ton) for PPBC injection on ex-Port Harcourt, Nigeria, cash excluding 5% VAT basis. Meanwhile, the trader obtained PE offers at NGN317,000/ton ($1672/ton) for HDPE film, NGN314,000/ton ($1656/ton) for HDPE b/m, at NGN315,000/ton ($1662/ton) for HDPE injection, NGN313,000/ton ($1651/ton) for LLDPE film and at NGN321,000/ton ($1693/ton) for LLDPE injection with the same terms.

Meanwhile, another trader operating in Lagos also reported receiving new Middle Eastern PE prices from a major Saudi producer with increases of $110-120/ton for LLDPE c4 film at $1430/ton CFR Lagos, 90 days basis. The trader also received PPBC injection offers from a South African producer at $1400/ton with the same terms.

“We only received LLDPE film offers from a major Saudi Arabian producer while we received no offers from other Middle Eastern suppliers either for HDPE or PP products. Middle Eastern producers have spared very limited allocations to Nigeria as they prefer to divert their cargoes to markets like Southeast Asia where they can achieve higher netbacks. Meanwhile, South Korean suppliers are to start giving new April offers from April 10. However, given the number of maintenance shutdowns in that country, we are not expecting comfortable quota amounts from them, either,” the trader stated.

”Coming to the local market, domestic producer ELEME is reportedly running their plant normally and is delivering their cargoes without any problems. Demand is performing well in Nigeria and the market appears to be reaching some kind of stabilization following the elections. Overall supply levels are in line with demand. Players voice their expectations for another round of increases by mid-April from ELEME given the fact that players show good demand towards their materials,” added the trader.

In South Africa, a trader operating in Johannesburg commented, “We received $80/ton higher April HDPE and LLDPE film offers from a major Saudi Arabian producer at a single level of $1380/ton on CFR South Africa, 90 days deferred payment basis. However, we have not received any LDPE film offers from this Saudi producer while another Saudi producer offered us $1320/ton for LDPE film with the same terms.”

The trader continued, “On another note, local producers SASOL and Safripol issued ZAR800/ton ($67/ton) hikes on their April PE prices. SASOL offers LDPE film at ZAR16050/ton ($1167/ton without VAT) and LLDPE film at ZAR16350/ton ($1189/ton without VAT) on FD Johannesburg, South Africa, cash inc 14% VAT. The trader also obtained HDPE film offers from Safripol at ZAR16850/ton ($1226/ton without VAT) with the same terms. Demand is performing well as most players are rushing to secure cargoes amidst tightness as they anticipate further hikes from the local producers for May.” According to him, SASOL is experiencing a technical issue at their LDPE line and that’s why they offer restricted LDPE film quotas to the market.
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