Import PP, PE prices for May announced higher to Africa
A film products manufacturer based in Kenya stated that they received higher PP and PE prices from two different Middle Eastern producers for May. “We expect to hear higher prices from another Middle Eastern producer over the short term as the supplier has been limiting their allocations to Kenya for the past few months and is therefore feeling free from inventory pressure. Demand is steady in Kenya while supply is sufficient to meet the market’s needs. Price increases may pass for this month, but we believe that prices will stabilize by June,” the buyer commented. Another converter reported receiving higher PP and PE prices for May from a Saudi major. “Supply was a bit tight in the previous month, so we had been expecting higher prices from Middle Eastern suppliers,” the buyer reported.
A third converter said that they also received higher PP and PE prices for May from different Middle Eastern suppliers. “Demand is not all that healthy in the market and these increases exceeded our expectations. Demand is slowing down in line with the rainy season and is not likely to recover until July. On the supply side, prompt cargoes are a bit limited in the market, especially for HDPE blow moulding and PP raffia,” the converter stated.
In Nigeria, players reported receiving significant May price hikes from both import and domestic suppliers. A converter reported receiving higher PP and PE prices from the domestic producer for May, commenting, “The local producer has cut back on their deliveries and is now only supplying around 30-40% of their standard quantities. Demand in general is normal, although buying interest for PP raffia is slowing down in line with the season.” Another converter stated, “Prices are firming up. The local producer is experiencing some production issues while import availability is tight due to the weakness in the local currency and a shortage of foreign currency. Import cargoes are available in the market, but it is difficult to secure enough dollars to purchase import materials.”
A distributor added, “Demand for domestic material is strong given limited import availability and the strong dollar. We are hopeful that local supply and demand dynamics will be more balanced in June.”
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