October expectations revealed in Africa’s PP, PE markets
This was mostly the case in September since PP and PE players received offers from overseas and regional suppliers with rollovers to increases of up to $60-70/ton despite poor demand. Although initial offers were trimmed down in some countries later in the month due to unsupportive demand amid parity fluctuations and economical unease, some players had to pay September hikes due to the sellers’ firm stance.
In Tunisia, players reported concluding €30/ton lower deals for both PP and PE compared to the initial September offers from the Saudi major due to sluggish demand. A source remarked, “Supplies are sufficient while overall market activities are slow. Suppliers were open to negotiations as their sales have dropped compared to the previous month. Regarding October, the sentiment appears to be firm. However, lethargic demand might continue to put pressure on prices.”
In Nigeria, after applying $22-33/ton increases on PP prices early this month, ELEME kept its mid-month offers unchanged, although market expectations were calling for increases due to the lack of imports. A distributor in Lagos commented, “Players keep a close eye on ELEME’s October announcements, which are still expected higher, as most of the Middle Eastern offers disappeared from the market.”
In Kenya, a converter said, “Demand for PP is better than PE due to the ban on plastic bags.” A distributor offering on behalf of the Middle Eastern producers with hikes also confirmed limited demand especially for film grades due to the ban. However, he said, “Allocations are not ample this month. Prices are expected to post further hikes for October shipments in line with the global upturn.”
A distributor in Algeria also reported, “We expect prices to track a firmer trend amid higher monomer costs in the wake of Hurricane Harvey. Suppliers will raise their offers in sync with the global firming. Availability is not ample especially for PP cargoes, which is why some suppliers were firm on their offers and refused lower bids in spite of muted demand. As for end-demand, it is performing slowly amid economical challenges and political instability.”
Players are now waiting to see if sellers will be able to obtain their hike targets in October or if they will have to surrender to thin demand and step back from their hike targets as was the case in September. The degree of their sales pressure is likely to set the tone of the market, some argue.
More free plastics newsPlastic resin (PP, LDPE, LLDPE ,HDPE, PVC, GPS; HIPS, PET, ABS) prices, polymer market trends, and more...
- Asian ethylene stable for a month amid signs of rebound
- Upturn resumed in Asia’s export PET prices
- Jan PVC expectations divided in India amid long supplies, improved demand
- Saudi major seeks mostly rollovers for PP, PE in Mid-East, Africa
- European PP buyers skeptical about cost-driven hikes
- China’s local PVC market rebounds from 5-month low
- Bullish run persists in Asia’s ABS markets, Europe follows suit
- China’s growing appetite for PE drives record-high imports
- Are Turkey’s polymer imports to close 2017 with a new record of 5 million tons?
- European PS set to firm back up in December after 2 months