Polyolefin trade in Africa slows on seasonal factors, reduced supplies

16-Aug-11

Trade has almost come to a halt in Africa's polyolefin markets this week as a result of seasonal factors and reduced supply, as per ICIS. Unfavourable exchange rates and high offers have also limited sales in the market for polyethylene (PE) and polypropylene (PP), which mainly rely on imports. Seasonal factors include Ramadan observed across much of northern and western Africa, and seasonal rainfall in western Africa. Importing producers, especially those based in the Middle East, have added to the slow trade as much of their reduced supply for August has been sold out already. Decrease in the value of local currencies, along with the recent fall in crude prices, has led to expectations of a price decrease. Despite the fall in crude prices, producers say they are in no hurry to reduce offers as prices for feedstocks ethylene and propylene have not decreased.