Saudi, Indian producers reveal November PP, PE prices to Kenya
According to reports, a major Saudi Arabian producer’s new PE offers indicate $10-20/ton decreases from their initial October levels while PP offers indicate rollovers. The producer offers HDPE film, injection, LLDPE film and LDPE film at $1280-1290/ton, HDPE blow moulding at $1320/ton, PP raffia and injection at $1150/ton and PP film and PP fibre at $1170/ton on a CFR Mombasa, Kenya, 90 days deferred payment basis. Higher HDPE b/m prices when compared to the other PE products were tied to tighter availability for this product.
Meanwhile, another Saudi producer offers PE at around the same levels with the aforementioned Saudi producer at $1280/ton for HDPE blow moulding and injection, $1290/ton for HDPE film and $1250/ton for LLDPE film CFR Mombasa, Kenya, 90 days deferred payment basis. However, this producer’s homo-PP offers are more competitive at $1100/ton with the same terms for PP raffia and injection.
An Indian producer’s PP raffia and injection offers were also reported at rather competitive levels at $1100/ton with the same terms.
A Kenyan converter commented, “A major Saudi producer’s offers are more or less steady from October levels while overall demand in Kenya is slow and supply levels are comfortable.”
Another converter confirmed comfortable supplies and weak demand. “Banks have increased their interest rates significantly and this situation affects our end product demand. However, we are planning to secure some cargoes this month after negotiating with our suppliers,” he added.
A different buyer said, “The higher US dollar when compared to the Kenyan shilling continues to hinder import purchases. Meanwhile, we find the Indian producer’s PP offers more competitive than a major Saudi producer’s offers.”
According to a buyer, a major Saudi producer’s HDPE blow moulding quotas are tighter than other PE products. “However, another Saudi producer’s HDPE blow moulding quotas are comfortable and therefore, their prices for this product is more competitive. We believe that the current offer levels are open to negotiations in return for serious counter bids and we expect to hear lower done deal levels in the days ahead. Demand is weak, money markets are tight and money circulation is slow. On top of that, new taxes implemented by the government will also negatively affect local trade,” he added.
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