Algerian trader: Buyers opt for off-grade materials
According to him, overall demand remains slow and the depreciating local currency against the US dollar is one of the reasons that the decreases issued in July did not do much to improve buying interest.
“For example, the July import HDPE prices had been announced with $30-40/ton decreases from June. However, given the devaluation of the Algerian dinar against the US dollar, distributors could not reflect these import declines to their locally held offers much. High exchange rates caused the decrease amounts to be minor,” he stated.
Considering the current situation of weak demand, players’ struggles amidst the economic weakness and the fact that the Algerian market was trading at much higher levels than Asian markets, he expects to hear declines on August prices.
“Buyers have been minimizing their purchases and traders did not import much either in July. This situation led to some tightness in the distribution market and helped lift up locally held prices during the month. However, in August, we anticipate adequate decreases in the import market and we anticipate these decreases to be reflected onto local market levels as well,” he commented.
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