Initial Sept PE and PP offers emerge in Africa
A distributor operating in South Africa reported that the Saudi major offers HDPE film and LLDPE c4 film at $1240-1260/ton and LDPE film at $1280-1300/ton all on a CFR Durban, South Africa, 90 days deferred payment basis.
“Due to the high exchange rate, there is a gap between local and import offers. Buyers prefer to meet their needs from the local market while players in the import market are struggling to keep their business due to hampered market activities. Sasol is planning shut its refinery which is expected to last around two to three weeks. They have high stock levels and there will be no supply issues, however we are expecting to see the effect of the maintenance on the market. Overall the market sentiment is quiet now and the activity is slow,” reported the trader.
A plastics end-product manufacturer in Tunisia reported that the major producer announced its September PP and PE offers at stable levels from August. According to the buyer, the new offers stand at €1210/ton for LDPE film, at €1120-1130/ton for LLDPE c4 film, at €1140/ton for HDPE film, at €1160/ton for HDPE pipe (PE 100) and at €950/ton for PP homo raffia and injection, all on a CIF Tunisia, 90 days deferred payment basis.
The converter commented that the market activities have further slowed due to the upcoming Eid holidays. Demand is still weak and the market has been struggling with liquidity issues. “Prices are still high while we are waiting for offers from other producers before making any purchases as they might be more competitive,” added the converter.
A trader operating in Algeria reported receiving the Saudi major’s September PP and PE prices with rollovers from the previous month. The Saudi major’s offers remained unchanged at $1350-1370/ton for LLDPE injection, at $1280/ton for LLDPE c4 film, at $1290/ton for LDPE film, at $1280-1300/ton for HDPE film, and at $1100/ton for PP homo raffia and injection, all on a CIF Algeria, 90 days deferred payment basis.
The trader said, “The producer is making its deliveries late. Although supplies are not ample in the market nowadays, prices followed a stable path as demand is slow. Buying interest is very thin and players are currently reluctant to make fresh purchases and the exchange rates are high. We are expecting the market to stay at the same levels this month given the nearing Eid holidays. We are planning to make some purchases, but we will try to conclude deals at lower offers with another supplier in order to avoid the late deliveries.”
In Kenya, a converter reported receiving new offers from the Saudi major. Accordingly, the producer rolled over its HDPE blow moulding, LDPE film and LLDPE c4 film offers while issuing a decrease of $20/ton on HDPE film prices and $10/ton on PP raffia and injection offers. The producer’s offers are now at $1230/ton for HDPE blow moulding, at $1220/ton for LDPE film, LLDPE c4 film and HDPE film and at $1040/ton for PP-homo raffia and injection, all on a CFR Mombasa, Kenya, 90 days deferred payment basis.
The converter opined that although demand usually picks up in August and September; this year demand is sluggish given the bad economic situation and tight liquidity.
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