East African players receive new February polymer prices
A trader offering on behalf of a Saudi producer both to Kenya and to the United Republic of Tanzania commented, “February prices indicate decreases but players in the market are looking for further reductions from the initially announced levels. Meanwhile, other Middle Eastern producers are expected to reveal similar decreases given comfortable supplies and weak demand.” According to the trader, the producer’s new prices indicate $80-150/ton decreases for PE and $100-120/ton drops for PP.
The producer offers HDPE film at $1220-1270/ton, HDPE b/m at $1230/ton, LDPE and LLDPE film at $1230/ton, PP raffia and injection at $1100/ton, PP block copolymer injection at $1120/ton, PET at $920/ton and PVC k67-68 at $970/ton on CFR Mombasa, Kenya, 90 days and CFR Dar es Salam, United Republic of Tanzania, 90 days deferred payment basis.
A buyer who received offers from a Saudi producer at $1230/ton for HDPE b/m and at $1220/ton for HDPE film reported that South Korean PE offers are much more competitive than the Saudi producer’s prices. The buyer obtained $1170/ton for South Korean HDPE b/m and $1150/ton for HDPE film on CIF Kenya, 90 days basis. South Korean HDPE b/m prices are $60/ton cheaper while film prices are $70-120/ton lower than the Saudi producer’s offers.
“The Saudi producer implemented three digit decreases on their prices but South Korean prices are still more competitive. Therefore, we anticipate some downward adjustments from the Middle Eastern producer while we see no improvements on the demand side,” he added.
Meanwhile, another converter reported receiving South Korean PP raffia and injection at $1120/ton and PP block copolymer injection at $1170/ton on CIF Kenya, 90 days basis. However, in spite of the fact that South Korean PE prices are competitive relative to Middle Eastern prices, PP prices for this origin are above the Saudi producer’s new February levels.
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