Nigeria’s ELEME issues PP, PE prices, lower imports emerge
A trader reported receiving new August PP and PE prices from the local Nigerian producer ELEME with rollovers from July. The producer had also rolled over their prices in the past month. The second consecutive rollover decision came as a bit of a surprise to buyers, who have been expecting decreases from the producer.
Another trader who also reported receiving new offers from the producer said, “Despite lower import offers, ELEME rolled over their prices. The producer considered the depreciating Nigerian naira against the US dollar when deciding upon their August pricing policy. Besides, these days, due to new regulations, banks are giving priorities to the food and medicine sectors rather than the chemical sector when providing foreign currency. As a result of the difficulties players are facing when obtaining letters of credit from banks and cash flow issues, ELEME appeared to have achieved relatively better sales even after rolling over their prices.”
“Meanwhile, import market prices have recorded decreases in line with expectations. However, we anticipate further declines later in the month given the rainy season in the country, which is expected to last until mid-October, during which players are likely to meet their immediate needs while waiting for lower prices to emerge,” he added.
ELEME offers HDPE film at NGN355,000/ton ($1784/ton), HDPE blow moulding at NGN352,000/ton ($1769/ton), HDPE injection at NGN353,000/ton ($1774/ton), LLDPE c4 film at NGN350,000/ton (1759/ton), LLDPE c4 injection at NGN360,000/ton ($1809/ton), PP injection at NGN345,000/ton ($1734/ton) and PP raffia at NGN348,000/ton ($1749/ton) on ex-Port Harcourt, cash excluding VAT basis.
Meanwhile, South Korean PP raffia and injection prices were reported at $1335/ton while PP block copolymer injection prices were pegged at $1400-1410/ton CFR Lagos, Nigeria, subject to 10% customs duty, 90 days deferred payment basis. Apart from Asian offers, Middle Eastern LDPE film was reported at $1485-1510/ton, LLDPE film at $1470/ton and HDPE film at $1480/ton with the same terms.
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