Buyer receives August PP, PE offers from Nigeria’s ELEME
However, some had expected that ELEME may reduce their prices this month due to pressure from competitive Asian import prices. While the landed costs of imports fall well below ELEME’s new August offers, both for PP and PE, it appears the producer is somewhat shielded by the fact that buyers are turning to the local market to meet immediate needs because of the fluctuating exchange rate and the fact that many are trying to wait before purchasing, which leads them to prefer locally held prompt materials.
The converter commented, “Demand for imports is mute given the appreciating US dollar. The exchange rate volatility is causing panic in the market and buyers prefer to source locally. Demand is also weak and players prefer to wait before purchasing right now.”
ELEME’s homo-PP raffia prices are at NGN348,000/ton ($1749/ton) and injection at NGN345,000/ton ($1734/ton) on ex-Port Harcourt, cash excluding 5% VAT.
ELEME’s August prices are at NGN360,000/ton ($1809/ton) for LLDPE injection, at NGN350,000 ($1759/ton) for LLDPE c4 film, at NGN355,000/ton ($1784/ton) for HDPE film, at NGN352,000/ton ($1769/ton) for HDPE blow moulding and at NGN353,000/ton ($1774/ton) for HDPE injection on ex-Port Harcourt, cash excluding 5% VAT.
In comparison to imports, players had reported Asian LLDPE c4 film offers at $1430/ton CFR Lagos, cash, subject to 10% customs duty. This translates to around $1603/ton after adding duties and an estimated $30/ton for landing costs. This contrasts with ELEME’s offer at $1759/ton. Similarly, Asian HDPE film was heard at $1345/ton CFR basis, which has a landed cost of around $1509/ton after adding customs duties and estimated $30/ton for landing costs while ELEME’s price is at $1784/ton.
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