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North African players: April PP, PE supplies tight

by ChemOrbis Editorial Team - content@chemorbis.com
  • 21/04/2015 (16:55)
A film products converter operating in Morocco reported that they received a very limited amount of materials from a major Saudi Arabian producer for April. They received HDPE film at €1280/ton on CIF Casablanca, Morocco, 90 days deferred payment basis. “The Saudi producer holds very limited supplies and therefore, they did not deliver to all of their customers. Overall supplies have been very tight in April both from European and Middle Eastern producers given production issues. On the other hand, demand is performing well and is supporting price increases. In May, we anticipate further price hikes given strong crude oil prices as well as the supply constraints,” he commented.

Another converter operating in Algeria reported receiving LDPE film offers from a Middle Eastern producer at $1345/ton on CIF Algeria, 90 days deferred payment basis while they also received South European LDPE film at $1400/ton with the same terms. However, the converter said that they have not received many offers from Saudi Arabian and European producers for April. “Supplies have been very tight both in Europe and the Middle East. Players are struggling to get even their immediate needs. Luckily for us, we had some stocks to work with and we were not greatly affected by this situation. Apart from the supply issues, the Algerian dinar retreated against the US dollar by around 10%, causing a liquidity problem in the market. Despite cash flow issues, we still anticipate firmer May offers on the back of supply problems,” he added.
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