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More January PP, PE prices surface in Africa

by ChemOrbis Editorial Team -
  • 14/01/2016 (11:59)
In Africa, more January PP and PE prices have started to be surface in the market. Players in Tunisia, Morocco, Kenya and the United Republic of Tanzania also confirm receiving new levels with decreases for the month. Meanwhile, Egyptian buyers confirmed receiving downwardly adjusted levels from a major Saudi producer.

A Tunisian converter reported that the new January PP and PE offers from Middle Eastern and European suppliers with decreases of up to €70/ton for PP and around €10/ton decreases for PE from December. “We are not expecting the trend to change direction in February,” he commented.

Overall Middle Eastern and European import offers in Tunisia stand at €1210/ton for HDPE film, €1040-1100/ton for PPBC inj., and at €1140/ton for LDPE film on a CIF Tunisia, 90 days deferred payment basis.

In Morocco, a trader reported, “PE prices are down around €20/ton from December. Demand is slow and the government’s decision to ban plastic bag production will officially be effective as of the 4th of July, 2016. This situation has caused panic amongst plastic bag manufacturers. On top of that, there are further decrease expectations prevailing in the market and no one want to build up stocks while buyers are trying to push levels down as low as they can.”

Overall Middle Eastern and European PP and PE prices stand at €1120-1180/ton for LDPE film, €1110/ton for LLDPE c4 film, €1120/ton for HDPE film and at €1100/ton for HDPE b/m on a CIF, Casablanca, Morocco, 90 days deferred payment basis.

In Kenya and the United Republic of Tanzania, Middle Eastern producers approached the market with their new January levels, according to players’ reports. A Saudi Arabian producer’s homo-PP prices indicate up to $50/ton decreases in Kenya while another Saudi producer’s prices are up to $70/ton down for homo-PP and $30-40/ton down for LDPE and LLDPE film in Tanzania.

Prices stand at $1180/ton for LDPE and LLDPE film, $960/ton for PP raffia and injection, $1170-1230/ton for HDPE film and at $1030-1050/ton for PPBC injection on a CFR Mombasa, Kenya, 90 days basis. In the United Republic of Tanzania, prices are at $950/ton for PP raffia and injection, $1220/ton for LDPE film and at $1210/ton for LLDPE film on a CFR Tanzania, 90 days basis.

A Tanzanian converter also commented, “We might consider making some fresh purchases this month given our low stock levels and the more competitive prices emerging in the market for January. However, we are not buying beyond our immediate needs since the high season for our materials will not start before April. Considering firm upstream production costs, we anticipate a stable to softer trend in the days ahead.”

A Kenyan converter said, “A major Saudi Arabian producer’s PP and PE offers form the high end of the overall ranges and therefore, we think that they might revise their prices downward. As January offers are more competitive than December, demand has improved a little. However, players are still cautious about fresh purchases as expectations continue to center on additional decreases.”

Meanwhile, in another African market, namely Egypt, the same major Saudi producer that the Kenyan converter mentioned had already cut their initial January levels since their offers were not competitive with respect to other regional producers’ prices despite their initial cuts for the month. The producer issued additional decreases of $80-90/ton for HDPE film at $1200-1210/ton, $110/ton cuts for HDPE b/m at $1230/ton, $60-70/ton decreases for LDPE and LLDPE c4 film at $1270/ton and $70/ton cuts for PP raffia and injection at $1000/ton CIF Alexandria, 90 days.
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