Kenyan buyers receive June import PP, PE prices
The buyer commented, “Overall trade is very weak while supplies are sufficient and even exceed demand. After this month, we expect to see a downward trend given thin buying interest.”
Meanwhile, another converter, who received the same level from the Saudi major for June LLDPE film at $1550/ton on CIF, 90 days basis stated, “Prices are very high and we are waiting to hear from other sources in the market. We see good demand for our end products, but we prefer to delay our purchases until we can obtain lower levels.”
A different converter operating in Kenya also reported receiving new June prices from a major Saudi producer with $20-40/ton hikes for PP and PE. The buyer received PP raffia and injection with $20/ton increases from May at $1490/ton, LLDPE film with $40/ton hikes at $1550/ton and HDPE film with $30/ton increases , again at the same level, of $1550/ton on a CIF Mombasa, Kenya, 90 days deferred payment basis. Meanwhile, the buyer received PPBC from the same producer at $1580/ton with the same terms.
Apart from the Saudi producer, the buyer also received Brazilian PPBC injection at $1460/ton on a CIF Kenya, 120 days deferred payment basis. “Demand is very slow after these June hikes. Considering weak buying interest and relatively improved supply levels, the increase amounts on deals might be less than sellers’ initial hike targets. However, July expectations already center on decreases. Regarding the offer for Brazilian PPBC, we find it very competitive against the Saudi producer’s June prices. However, we find it risky at the same time due to the long shipment time as we think that prices will record decreases over the medium term. Meanwhile, the distribution market is suffering from the depreciation of the local currency against the US dollar,” he added.
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