Saudi producers reveal Feb PP, PE prices to Africa
In order to track weekly developments in Africa’s PP market, please see our bi-weekly Polymer Digest Africa Weekly PP Analysis (For members only)
A major Saudi Arabian producer’s new February prices to Egypt indicate large decreases from their initial January prices, by around $90-110/ton for PE and $50-70/ton for PP. However, this producer had to concede to large discounts during the course of January on the back of the weak demand and therefore, their new February prices represent modest changes when compared with the prices they offered to the market towards the end of January. The producer’s prices represent $20-30/ton decreases for PE and rollovers for PP when compared with their latest January levels.
A converter who received these new levels from the producer commented, “We were expecting decreases from the producer but not as large as the reductions they issued for January. We found the new levels to be reasonable but we still anticipate some additional decreases in case of deals. However, at the same time we feel like we might start making some fresh purchases this month as we think that prices may have reached the bottom.”
In order to track weekly developments in Africa’s PE market, please see our bi-weekly Polymer Digest Africa Weekly PE Analysis (For members only)
Meanwhile, a different Saudi producer cut their February PE prices by $50-70/ton and homo-PP prices by $40/ton in Egypt. A trader offering on behalf of this producer commented, “Our Saudi supplier has already issued decreases for February, but our customers continue to push for lower deals as demand remains weak in Egypt.”
Another Saudi producer elected to roll over their February PE and PP prices. However, this producer’s offers were already forming the low ends of the overall ranges in January. A trader who received these rolled over levels, said, “Supplies are not that ample but they are in line with the current demand, which performs quietly. Players still appear to be cautious towards fresh purchases and therefore, we believe that additional discounts are very likely on deal levels.”
A raffia products converter also commented on the availability and claimed that the supplies from a major Saudi Arabian producer are rather limited, especially in the distribution market. The converter tied this situation to the recent hike on the US dollar in the black market, which hampered the import activities even further and caused restricted locally held supplies.
In another African market, Kenya, converters also reported receiving February prices from a major Saudi producer with decreases of $30-100/ton for PP and $20-80/ton drops for PE, so far.
A Kenyan converter said, “These decreases were already expected in the market as demand remains slow in Kenya. Most players are still limiting their purchases to their urgent needs but we think that after this month’s decreases more players will return to the market to replenish their stocks. On another note, Saudi producers highlight their limited quotas, especially for HDPE and LDPE film.”
Another Kenyan converter also remarked, “Demand has been picking up since January and further improvements are expected given the approaching agricultural season. Supplies are slightly tight but they are still in accordance with buying interest.”
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