Asian PP and PE prices for August surface in Africa
“These offer levels indicate decreases and we expect further decreases in the upcoming weeks given the globally poorly performing demand and comfortable supplies. Plus, in Kenya, most players are struggling with the depreciating local currency against the dollar as well as ongoing liquidity issues. These factors continue to hinder trade,” he added.
However, local media sources reported on July 29 that the Kenyan Central Bank sold an unspecified amount of dollars to banks on July 28, help to lift the shilling against the dollar a bit.
In West Africa, a Nigerian trader operating in Lagos stated, “We started to receive August offers from Asian suppliers, but we are still waiting for the local producer ELEME’s prices as well as Middle Eastern producers’ offers for the next month. The new Asian offers indicate decreases from the latest levels we received for these origins and the downward trend in Asian origins makes us expect decreases even more from the Middle Eastern producers. The decline in Asian offers proves the globally softer trend. On another note, overall demand has started to pick up in Nigeria a bit following the Ramadan holiday but in general, the country’s economic state is still discouraging. Therefore, buying interest remains below average. Players mostly expect decreases from ELEME, who rolled over their prices in July supported by the depreciating local currency, the naira. However, the global trend is clearly downwards and the naira is showing some signs of stabilization. These factors may result with decreases on the local producer’s side.”
The trader was offered South Korean LLDPE film at $1430/ton, LDPE film at $1420/ton, HDPE film at $1345/ton and PPBC injection at $1300/ton on a CFR Lagos, Nigeria, cash basis. Meanwhile, they also received Indian PP raffia and injection offers at $1240/ton for August with the same terms.
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