Algerian players: March imports firm, demand not so good
A trader commented, “Demand has been slow since the beginning of the year although we are hoping to see some improvement before Ramadan starts in early June. March prices rose, but not very significantly. Therefore, the impact of these hikes was not very large. The real problem is supply restrictions. A major Saudi producer generally has limited PP and PE allocations while they cannot supply any HDPE b/m cargoes at all. Another regional producer has already sold out while a global producer holds very limited quotas. Therefore, this producer’s LDPE film prices are higher than the rest of the offers in the market. Given limited supplies, we are expecting prices to continue to firm up in April.”
Another trader confirmed, “Buying interest is slow and we continue to make hand-to-mouth basis purchases from the distribution market. Generally, all players adopt a cautious stance when it comes to making fresh purchases.”
Meanwhile, a converter highlighted, “March import offers indicated increases from February but not in very large amounts. Triggered by firm crude oil prices, we anticipate that this upward trend will continue until Ramadan starts. Demand is still slow and it has been like that since the beginning of the year. However, lately, we have started to see some slight improvements on buying interest. Buyers appear to be starting to stock up slowly before Ramadan, when demand is usually stronger.”
Import PP and PE prices in Algeria stand at $970-1020/ton for PP raffia and injection, at $1000-1020/ton for PP film, $1250-1320/ton for LDPE film, $1220-1230/ton for LLDPE film, $1280/ton for LLDPE injection, $1160-1195/ton for HDPE film, $1195/ton for HDPE b/m and $1220/ton for HDPE injection on a CIF Algeria, 90 days deferred payment basis.
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