African players voice January expectations for PP, PE
Crude oil futures have risen by more than 18% since mid-November, gaining momentum after the consensus over production cuts. Nowadays, NYMEX February crude is trading above $53/bbl while ICE February Brent crude is above $55 /barrel.
In the past few months, import markets in Africa followed a stable to softer path in the face of the parity and liquidity issues while local markets maintained their firming trend as a result of buyers’ preference to meet their needs locally to refrain from making risky import purchases.
A trader operating in Nigeria reported that local producer, ELEME, implemented further increases on their offers as they were seeing good demand amidst the halted import activities. “Players are abandoning import purchases due to the depreciating naira against the US dollar and the persisting liquidity issues and they prefer to meet their needs locally. Demand has started to improve before the holidays while we are expecting new January offers to track a stable to firmer path,” added the trader.
A plastic end manufacturer in Kenya commented that demand is stagnant now as players are away from the market due to the Christmas holidays. “We feel that new offers for January will be revealed with rollovers or some hikes due to the gains in energy markets,” said the converter.
A trader also argued that the PP and PE markets will firm up in January with support from the expectations of better demand.
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