Nigerian players receive new May PP, PE prices
Nigeria’s local PE and PP producer ELEME revealed their new prices with noticeable increases from their April levels.
The producer issued NGN35,000-40,000/ton ($176-201/ton) increases on PE and NGN45,000-50,000/ton ($226-251/ton) increases on PP.
The producer’s new prices stand at NGN437,000/ton ($2196/ton) for PP raffia, at NGN434,000/ton ($2181/ton) for PP injection, at NGN 457,000-470,000/ton ($2297-2362/ton) for PPBC injection, at NGN491,000/ton ($2468/ton) for HDPE film, NGN488,000/ton ($2453/ton) for HDPE b/m, NGN489,000/ton ($2458/ton) for HDPE injection, NGN490,000/ton ($2463/ton) for LLDPE film and at NGN505,000/ton ($2538/ton) for LLDPE injection on ex-warehouse Port Harcourt, cash excluding 5% VAT basis.
A distributor commented, “The local producer ELEME raised their May prices given the good demand they see towards their cargoes. Plus, the producer holds very limited availability, which supports their increase targets. Although we are not sure why ELEME has limited supplies, we anticipate overall availability to improve by June. Regarding demand, it generally performs well as most players prefer to meet their needs from the local producer amidst high import and distribution market prices stemming from higher USD exchange rates against the NGN.”
Meanwhile, in the import market, players have started to report May PP and PE prices from Saudi Arabian producers.
Saudi May prices stand at $1170-1190/ton for PP raffia and injection, at $1250/ton for PPBC injection, at $1330/ton for LDPE film, $1350/ton for LLDPE film and at $1300-1350/ton for HDPE film on a CFR Lagos, Nigeria, cash basis.
A trader stated, “May import PE prices are around $30-40/ton above April levels while PP prices indicate around $70-80/ton increases from last month. Apart from the firmer import market levels, the local producer ELEME also lifted their prices given the high season and good buying interest. Plus, the lack of demand in the import market also supports the local producer in their hike requests. Since ELEME sees better demand, they have started to deliver only 40% of their quotas to the customers in order to be able to meet as many inquiries as they can.”
Meanwhile, a converter who received new Saudi PE prices said, “Saudi HDPE film prices indicate around $100/ton increases when compared with the latest offers we received back in April. Last month, we were hesitant to make import purchases given the very high levels and liquidity issues, but now we feel obligated to conclude some deals. Therefore, we will try to find the most competitive price.”
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