Africa’s PE, PP markets readying to shift direction in May
by Nada Samir - nada@chemorbis.com
In Africa, the bullish run which pervaded the regional polyolefin markets since Q1 2025 started to lose momentum in April. Although Western markets bucked the overall trend, with Nigeria’s CIF prices up on a monthly comparison, discounts remained achievable for serious bids amidst mounting resistance. Now that May is just around the corner, the persistent demand lethargy along with weak costs are expected to weigh on markets.
CIF Nigeria remains firm for 4th consecutive month
In Nigeria, April PP offers were assessed stable to $20/ton higher compared to latest March levels. Also, PE offers largely witnessed $20-30/ton increases compared to a month earlier yet, LLDPE film was an exception as it sustained its levels stable from March. According to market participants, discounts on deals were achievable; however, the sharp downturn in oil and financial markets following the recent trade barriers across the globe had kept players away from fresh purchases, waiting for a clearer outlook.
ELEME prices offer mixed bag
Meanwhile, the country’s local producer, ELEME, continued to cut their PP offers for the 7th consecutive month, issuing NGN48,200-50,000/ton ($30-31/ton) decreases from March. On the contrary, the producer’s April PE offers changed direction after six consecutive months of price decreases and were assessed NGN20,000-25,000/ton ($12-16/ton) higher as compared to March levels. According to market participants, the Nigerian naira has failed to benefit from the declining US dollar index, even as new tariffs imposed by the US take effect. “Demand for USD in Nigeria remains high, contributing to the naira’s continued weakness,” a market source opined.
East Africa’s markets stabilize, discounts achievable
In Kenya, initial April PP and PE offers emerged with rollovers when compared to the latest March deals; however, players didn’t rule out the possibility of lower deals for serious bids. ChemOrbis Price Wizard suggests that the PE market continues to stand at its highest level in almost 2 years. “Buyers are adopting a wait-and-see stance amid the recent trade tensions and weak global markets,” a distributor remarked.
Higher euro pushes USD equivalences up despite stability in North Africa
In North Africa, April PP and PE offers from regional producers indicated mostly rollovers from March. However, the rising parity caused higher offers in USD terms for euro-based markets including Morocco and Tunisia, which has made Algeria the most competitive market in April in terms of PP, HDPE and LLDPE film while Tunisia remained on the low ends for LDPE film and HDPE b/m.
In Morocco, PE players received new April PE offers from a Saudi major with rollovers following the hike requests for March. Meanwhile, competitive Omani as well as US origins emerged for April, forming the low ends of the overall price range. In the PP market, copolymer offers were stable on euro basis while USD equivalent offers were $60-65/ton higher on month. Homo PP offers were down €30-40/ton on the low ends, dragged down with the emergence of competitive Omani origins in the market. However, their USD equivalences were up by at least $10-20/ton on month due to stronger euro, despite the decreases in real offers. According to players, PPH film and fibre were limited from a major Saudi supplier, which justified its high prices.
Likewise, buyers in Tunisia received April PP and PE offers on a mostly stable pricing from March levels on euro basis. Again, higher euro/USD resulted in higher dollar equivalences compared to March levels. On dollar terms, PP offers were up by $55-65/ton on month whereas PE offers logged increases of $55-60/ton.
In Algeria, which is the most competitive country in North Africa, April PP offers from a Saudi major indicated no major changes from March; nevertheless, the overall PP ranges showed monthly declines with the emergence of competitive Omani origins at the low ends. Also, Saudi PE offers maintained their latest March levels stable into April. Moreover, Omani cargoes emerged this month and were assessed $20-40/ton lower compared to Saudi origins, pulling the low ends for LLDPE and HDPE film lower on month.
A downturn seems inevitable in May
Regional players argue that a revival in demand is not expected any time soon. Considering slumping upstream costs across the board and tariff uncertainties and a potential rise in ex-USG volumes which outstrip any probable supply concern, May PE and PP markets across the continent are expected to follow a softer lead.
CIF Nigeria remains firm for 4th consecutive month
In Nigeria, April PP offers were assessed stable to $20/ton higher compared to latest March levels. Also, PE offers largely witnessed $20-30/ton increases compared to a month earlier yet, LLDPE film was an exception as it sustained its levels stable from March. According to market participants, discounts on deals were achievable; however, the sharp downturn in oil and financial markets following the recent trade barriers across the globe had kept players away from fresh purchases, waiting for a clearer outlook.
ELEME prices offer mixed bag
Meanwhile, the country’s local producer, ELEME, continued to cut their PP offers for the 7th consecutive month, issuing NGN48,200-50,000/ton ($30-31/ton) decreases from March. On the contrary, the producer’s April PE offers changed direction after six consecutive months of price decreases and were assessed NGN20,000-25,000/ton ($12-16/ton) higher as compared to March levels. According to market participants, the Nigerian naira has failed to benefit from the declining US dollar index, even as new tariffs imposed by the US take effect. “Demand for USD in Nigeria remains high, contributing to the naira’s continued weakness,” a market source opined.
East Africa’s markets stabilize, discounts achievable
In Kenya, initial April PP and PE offers emerged with rollovers when compared to the latest March deals; however, players didn’t rule out the possibility of lower deals for serious bids. ChemOrbis Price Wizard suggests that the PE market continues to stand at its highest level in almost 2 years. “Buyers are adopting a wait-and-see stance amid the recent trade tensions and weak global markets,” a distributor remarked.
Higher euro pushes USD equivalences up despite stability in North Africa
In North Africa, April PP and PE offers from regional producers indicated mostly rollovers from March. However, the rising parity caused higher offers in USD terms for euro-based markets including Morocco and Tunisia, which has made Algeria the most competitive market in April in terms of PP, HDPE and LLDPE film while Tunisia remained on the low ends for LDPE film and HDPE b/m.
In Morocco, PE players received new April PE offers from a Saudi major with rollovers following the hike requests for March. Meanwhile, competitive Omani as well as US origins emerged for April, forming the low ends of the overall price range. In the PP market, copolymer offers were stable on euro basis while USD equivalent offers were $60-65/ton higher on month. Homo PP offers were down €30-40/ton on the low ends, dragged down with the emergence of competitive Omani origins in the market. However, their USD equivalences were up by at least $10-20/ton on month due to stronger euro, despite the decreases in real offers. According to players, PPH film and fibre were limited from a major Saudi supplier, which justified its high prices.
Likewise, buyers in Tunisia received April PP and PE offers on a mostly stable pricing from March levels on euro basis. Again, higher euro/USD resulted in higher dollar equivalences compared to March levels. On dollar terms, PP offers were up by $55-65/ton on month whereas PE offers logged increases of $55-60/ton.
In Algeria, which is the most competitive country in North Africa, April PP offers from a Saudi major indicated no major changes from March; nevertheless, the overall PP ranges showed monthly declines with the emergence of competitive Omani origins at the low ends. Also, Saudi PE offers maintained their latest March levels stable into April. Moreover, Omani cargoes emerged this month and were assessed $20-40/ton lower compared to Saudi origins, pulling the low ends for LLDPE and HDPE film lower on month.
A downturn seems inevitable in May
Regional players argue that a revival in demand is not expected any time soon. Considering slumping upstream costs across the board and tariff uncertainties and a potential rise in ex-USG volumes which outstrip any probable supply concern, May PE and PP markets across the continent are expected to follow a softer lead.
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