Slide deepens in PP, PE markets across Africa

Sellers across the African markets have started to concede to lower deals in line with previous expectations. Trading activity across the markets remains below average while the hiking inflation rates in the majority of the countries continue to cripple purchasing activity.

In Nigeria, PE prices were reported down by $80-100/ton when compared to the initially announced levels while PP prices were down by $30-60/ton. These additional decreases came on top of the initial $70-100/ton declines for PE and $30-50/ton declines for PP when compared to the latest April deals.

The most recent May offers are now at $1230-1240/ton for LDPE, $1130-1140/ton for LLDPE, $1200-1220/ton for HDPE film, $1240-1250/ton for HDPE b/m and inj., $1200-1210/ton for PPBC, $1280-1290/ton for PPRC, $1140-1150/ton for PPH raffia and inj., $1160-1170/ton for PPH film and fibre., all on a CFR Nigeria, cash, subject to 10% customs duty basis.

In Kenya, following the rollovers initially announced for May, players managed to achieve $70/ton decreases for PP and $70-100/ton for PE. The latest May offers are now standing at $1240-1270/ton for LDPE, $1180-1190/ton for LLDPE, $1120-1130/ton for HDPE film, $1170-1180/ton for HDPE b/m and inj., $1210-1220/ton for PPBC, $1250-1270/ton for PPRC, $1140-1150/ton for PPH raffia and inj., and $1170-1180/ton for PPH film and fibre., on a CFR Kenya, 90 days basis.

In Algeria, the latest May deals are currently standing lower than initial April prices by $90/ton for PE and $70/ton for PP, following the initial announcements for rollovers. Despite the decreases, players are reluctant to make new purchases noting that prices still have room for further reductions. The most recent May offers are standing at $1290-1300/ton for LDPE, $1180-1190/ton for LLDPE, $1190-1200/ton for HDPE film, $1230-1240/ton for HDPE b/m and inj., $1270-1280/ton for PPBC, $1350-1360/ton for PPRC, $1170-1180/ton for PPH raffia and inj., $1220-1230/ton for PPH film and fibre., on a CFR Algeria, cash basis.