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Nigeria’s ELEME issues January PP, PE prices

by ChemOrbis Editorial Team - content@chemorbis.com
  • 05/01/2015 (17:02)
Nigeria’s local PP and PE producer ELEME has issued their new January prices. Contrary to the market expectations, the producer revealed rollovers for a second consecutive month. Market players were expecting decreases from ELEME in line with poor market activity and the globally decreasing trend.

However, ELEME rolled over their prices for another month due to the depreciation of the local currency, the Nigerian naira, against the US dollar on the back of decreasing crude oil prices.

The producer offers at NGN300,000-304,000/ton ($1721-1744/ton) for PPBC injection, NGN294,000/ton ($1687/ton) for BOPP and raffia and at NGN291,000/ton ($1670/ton) for PP injection on an ex-warehouse Port Harcourt city, Nigeria, cash excluding 5% VAT.
ELEME offers HDPE film at NGN311,000/ton ($1784/ton), HDPE blow moulding at NGN308,000/ton ($1767/ton), HDPE injection at NGN309,000/ton ($1773/ton), LLDPE film at NGN307,000/ton ($1761/ton) and LLDPE injection at NGN314,000/ton ($1802/ton) with the same terms.

A distributor who received the new offers from ELEME commented, “ELEME rolled over their prices for the second month on a row. Crude oil prices keep decreasing and this situation affects Nigeria, Africa’s largest oil exporter, negatively. Economic conditions are weakening and the local currency, the naira, is losing ground against the US dollar. Therefore, ELEME elected to maintain their offer levels this month despite the market’s decrease expectations."

Meanwhile, the distributor added that January Middle Eastern import offers are yet to be offered to the country but South Korean imports were revised down by $20/ton from last week. This week, the distributor received South Korean PPBC injection at $1280/ton and HDPE film at $1320/ton on CFR Lagos, Nigeria, subject to 5% customs duty, cash basis.

“ELEME still holds a prompt availability advantage over import cargoes, which have a long transit time. If South Korean offers are revised down further and if Middle Eastern producers come with significant cuts to Nigeria, like they did in other global markets, ELEME might be under heavier downward pressure and they might have to adjust their prices downward despite the currency issues,” the distributor added.
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