Saudi major, local producer announce Dec PP, PE offers to Nigeria

Market players in Nigeria reported that they received new offers from both the local producer, ELEME and a Saudi major for December. The local producer implemented increases on its new offers from November while the Saudi major’s new offers indicate decreases ranging from $10-50/ton compared to its November levels.

According to a trader and a plastic end manufacturer, the local producer raised its offers by NGN29,000/ton ($92/ton) for HDPE film, b/m and inj., by NGN22,000/ton ($74/ton) for LLDPE c4 film, by NGN35,000 ($111/ton) PP raffia and injection and by NGN36,000/ton ($114/ton) for PPBC, bringing their new offers to NGN 679,000/ton ($2152/ton) for HDPE film, to NGN687,000/ton ($2177/ton) for LLDPE c4 film, to NGN676,000/ton ($2142/ton) for HDPE b/m, to NGN677,000/ton ($2146/ton) for HDPE injection, to NGN604,000/ton ($1914/ton) for PP raffia and NGN597,000/ton ($1892/ton) for PP injection and to NGN631,000-646,000/ton ($2000-2045/ton) for PPBC injection, all on an ex-Port Harcourt, Nigeria, cash excluding 5% VAT basis.

The converter said that the depreciation of the local currency, naira, continued to put upward pressure on the market. “We have abandoned import purchases for now and we meet our needs from the local market given the parity problems. After keeping their offers steady in November, ELEME had to increase their offers in order to cope with the firmer exchange rates,” added the converter.

The trader, meanwhile, also reported receiving new December offers from the Saudi major $50/ton lower for HDPE film and LLDPE c4 film while the producer’s new LDPE film and PP raffia and injection offers indicate smaller decreases of $10/ton from November. The major’s new offers are standing at $1210/ton for HDPE film and LLDPE c4 film, at $1270/ton for LDPE film, and at $1040/ton for homo-PP raffia and injection, all on a CFR Lagos, cash basis.

“Higher exchange rates as well as the local producer’s aim to increase their exports in order to get hard currency pushed ELEME to issue increases. Our supplies to the local market are fine whereas demand remains below normal, although players usually start to take positions before the holidays. The Saudi major’s LDPE film supply is limited this month and that’s why their offers are still high. Import activities remain slow as players are meeting their needs locally. I do not think ELEME will adjust their offers again this month or issue other raises as demand usually starts to slow as of the second half of December due to the Christmas holidays," commented the trader.