Initial Middle Eastern Dec PE, PP offers surface in Africa
In Tunisia, according to a trader, a major Saudi Arabian producer’s new offers stand at €1090/ton CIF Tunisia, 90 days for LDPE, LLDPE and HDPE film, down €20/ton from November while its PP raffia and injection offers were down €50/ton from the previous month’s levels to be currently pegged at €900/ton with the same terms.
“The new announcements came in line with our expectations given the slow market activities, meanwhile, we are waiting for more offers for December cargoes from other suppliers,” said the trader. Previously, the trader had pointed out that the Tunisian PE players were observing the market cautiously to see effects of the government’s decision to ban the use of plastic bags on prices.
In Algeria, according to a trader, the Saudi major issued decreases of $60-70/ton on its new PE offers on the month while issuing rollovers for homo PP compared to its November levels.
The trader said that the producer’s December offers are currently at $1170/ton for LLDPE c4 film, at $1190/ton for LDPE film, at $1180/ton for HDPE film, and at $1050/ton for PP homo raffia and injection, all on a CIF Algeria, 90 days deferred payment basis.
“The producer’s price announcement met our expectations. The market activities are expected to remain below average until the end of the year while buyers are only meeting their immediate needs nowadays,” commented the trader.
In Kenya, meanwhile, two plastic end product manufacturers reported receiving new December shipment PP and PE offers from a Saudi major with different pricing policies from November.
One of the manufacturers reported that the producer decreased its homo PP film and HDPE film offers by $10-20/ton while it implemented an increase of $10-30/ton on its new LDPE and LLDPE c4 film prices, bringing their offers to $1220/ton for LLDPE c4 film, $1240/ton for LDPE film, $1200/ton for HDPE film and $1050/ton for PP film, all on a CFR Mombasa, Kenya, 90 days deferred payment basis.
“We are not certain about the reason behind the increases and we tried to contact our supplier to check if they have a problem in their availability; however we did not receive any feedback yet. Meanwhile demand on our end product is disappointing and we are not expecting any significant changes given the end of the year," commented the converter.
However, the other manufacturer reported that they received the major’s new offers stable to $10/ton lower from November, which stand at $1200/ton for HDPE and LDPE film and $1020/ton for homo PP raffia and injection, with the same terms.
The converter also received new December shipment offers from another Saudi Arabian producer for HDPE film and PP raffia and injection which are standing at $1185-1190/ton and at $1010/ton, respectively with the same terms.
“We are seeing demand in the market, but it is still below moderate levels. Supplies are fine, but we are expecting the market to slow down during December given the year-end period and the upcoming holidays. In addition, we think that OPEC’s latest decision to cut production rates will affect the market in terms of prices, but not on a big scale; prices might record slight increases of $10-20/ton in the upcoming period," opined the converter.
More free plastics newsPlastic resin (PP, LDPE, LLDPE ,HDPE, PVC, GPS; HIPS, PET, ABS) prices, polymer market trends, and more...
- Upsurge continues to wreak havoc on Turkey’s PP, PE markets
- PVC rally roars back in Asia as supply worries mount
- China PP, PE markets join global rally after Lunar New Year holiday
- PE, PP and PVC supply crunch exacerbated on US absence, traditional trade flows upended
- European PP, PE markets set for 5th bullish month as shortage bites
- Turkey shattered as PP prices shoot up to surreal levels
- Polymer markets face one of most chaotic times
- Turnaround season set to get underway in Asia
- Crude oil heals COVID-inflicted wounds; now what lies ahead?
- Global shipping turmoil deepens, adding to the upheaval in plastic resins