Nigerian ELEME revises down PP, PE prices
The producer, who adjusted their prices downward by NGN10,000/ton ($61/ton), had initially issued decreases of NGN4000/ton ($24) for PP and NGN3000/ton ($18/ton) for HDPE and LLDPE products for October. Prior to ELEME’s initial lower October announcement, players had already been commenting on their decrease expectations given the rainy season, which dampens buying interest and is not expected to end until mid-October. Meanwhile, import Middle Eastern prices followed a mostly steady trend for PP and they recorded $10-20/ton drops for PE in the country.
A distributor who received ELEME’s new revised offers commented, “Crude prices have dropped around 15% since the beginning of October. Meanwhile, ELEME holds sufficient stocks and they aim to be able to compete with overseas producers as they acknowledge that their prices were around 50% higher than the October import offer range.”
According to the distributor, ELEME might opt for another decrease in November given the softer trend on import Middle Eastern prices as well as lower upstream costs. Meanwhile, Nigerian players are mostly observing the market and continue to restrict their prices to their urgent needs.
A converter also confirmed ELEME’s NGN10,000/ton ($61/ton) downward adjustment. He commented, “Political issues in the country coupled with cash flow concerns had been dampening buying interest for some time. However, these days, demand has improved a bit in Nigeria although it is still below normal levels. Regarding supplies, we do not believe that ELEME’s supplies are good enough to fulfill the market’s needs but there are import Middle Eastern cargoes available in the market to help close the gap.
The producer now offers HDPE film at NGN316,000/ton ($1916/ton), LLDPE c4 film at NGN312,000/ton ($1896/ton) , LLDPE c4 injection at NGN319,000/ton ($1939/ton), HDPE blow moulding NGN313,000/ton ($1902/ton), HDPE injection at NGN314,000/ton ($1908/ton), PP raffia at NGN304,000/ton ($1847/ton), PP injection at NGN301,000/ton ($1829/ton), BOPP at NGN304,000/ton ($1847/ton) and PP block copolymer injection at NGN310,000-314,000/ton ($1884-1908/ton) on an ex-Port Harcourt, cash not including 5% VAT basis.
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