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North and West African PE, PP markets surge in November

by Başak Ceylan - bceylan@chemorbis.com
  • 09/11/2021 (03:02)
PE and PP materials offered to northern African destinations including Egypt, Algeria and Morocco saw marked increases as compared to October. November offers in Nigeria, the largest polymer market in western Africa, were likewise higher month-on-month, largely as a result of constrained availability and the global uptrend.

Larger-than-expected hikes surprise Egyptian players

A Saudi Arabian major announced $100-140/ton increases for PP grades while also increasing PE offers by around $80-170/ton in Egypt. The state of the producer’s availability was not clear but there were signs of a continued tightness.

Another Middle Eastern producer’s PE offers were higher by around $60/ton to $110/ton over last month while a different supplier’s latest offers were assessed at a discount to a major Saudi producer’s November offers. However, these levels were still higher than last month’s averages.

These increases were beyond what many players had expected. “The market is already brittle due to back-to-back price hikes in import prices. Some believe that this may result in discounts in deal levels,” a trader said.

Offers from S. Arabia higher in Morocco, Algeria

In Morocco, new PPH raffia and inj. offers were at €1510-1520/ton while PE offers were at €1505-1540/ton for LDPE film, €1290-1300/ton for LLDPE C4 film, and €1320-1330/ton for HDPE film, CIF Casablanca. “Demand is there,” a source said, adding that supplies were constrained due to market logistics issues and shipment delays.

In Algeria, North Africa’s largest oil and gas producer, new PPH raffia and inj. offers from a major Saudi producer were higher month-on-month by $70-80/ton at $1780-1790/ton CFR Algeria. Meanwhile, HDPE film offers surged by around $100-140/ton over October levels to $1690-1700/ton while LDPE film offers increased by $40-50/ton to $1890-1900/ton CFR Algeria. LLDPE C4 film offers were unchanged at $1650-1670/ton, with the same terms.

"Allocations are very tight, especially for PE grades,” a trader said. ”Players are not feeling confident about the upcoming trend so purchases are hand-to-mouth,” he added.

Import offers rise on tightness in Nigeria

In Nigeria, West Africa’s largest polymer market, a major producer’s new levels were higher from their previous levels by around $70-140/ton at $1860-1870/ton for PPH raffia and inj., $1980-1990/ton for PPBC inj., $1900-1920/ton for LDPE film, $1550-1560/ton for LLDPE C4 film, and $1640-1650/ton for HDPE film, CFR Lagos, excluding 10% CD basis.

The availability and the global uptrend drove prices higher, players argued. “Activities are weaker than usual, largely due to a sharp depreciation of Nigerian naira and weak end-product sales.

ELEME’s offers firmer for 3rd straight month

Nigeria’s local producer ELEME announced increases of NGN40,200/ton ($98/ton) for PPH raffia and inj. grades. The producer’s PPBC inj. offers were likewise higher by NGN30,200-30,300/ton ($73-74/ton) while PE offers saw increases of NGN30,000-40,000/ton ($73-98/ton) as compared to October.
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