July PP, PE prices announced higher to Africa

Players in African markets report that new July prices for PP and PE are being announced with increases in line with strong upstream costs and globally firming trends, as per ChemOrbis. A trader offering Middle Eastern PP and PE prices to Kenya and Tanzania reported increases implemented by suppliers of US$20-30/ton for PP and $30-40/ton for PE for July. “Demand from Kenya and Tanzania remains satisfactory. Some converters are voicing complaints over the most recent price hikes, but we believe that they will eventually accept the new prices as there are not many alternative suppliers and prices in East Africa are competitive when compared with prices in other global markets. Supply had been tight in June due to some delayed deliveries, but we think that supply will be comfortable for July,” the trader stated. A film and injection products manufacturer in Kenya reported receiving Middle Eastern PP and PE prices for July with US$10-40/ton hikes. “Supply is still a bit limited, but it is more balanced with demand this month as buying interest has retreated somewhat. We think that suppliers will insist on their new offer levels for this month based on supply limitations,” the buyer commented. Another Kenyan converter reported receiving a $20/ton increase on July offers for HDPE blow moulding from a Middle Eastern supplier. “Availability has eased compared with the past month while demand has softened a bit with the onset of Ramadan. We are resisting our supplier’s increase attempts,” the buyer reported. Elsewhere in Africa, a trader based in Nigeria reported receiving new prices from Middle Eastern producers with $30-40/ton increases from June while adding that a domestic producer rolled over their PP and PE prices for July. “We are resisting our overseas suppliers’ hike attempts as local demand has softened with the start of Ramadan. Domestic prices rolled over, but the local producer is struggling with their deliveries and we are still waiting to receive some material we ordered from the local market. Some resellers are reportedly giving offers below their replacement costs owing to sluggish demand and cash flow concerns, which is creating some concern among other players,” the trader stated. A sack manufacturer in Nigeria also reported receiving rollovers in the local market. “Demand has weakened owing to Ramadan and we are waiting to receive some additional offers from other suppliers before making our purchasing decisions. We think that demand will not see any major improvement over the next month,” the buyer commented. According to ChemOrbis, new offers and prices ideas for July were also reported with increases in North Africa. A converter in Libya reported receiving raffia offers from a Middle Eastern producer with $20/ton increases from last month. “Demand has slowed down due to the beginning of Ramadan while supplies are tight as overseas suppliers are only giving limited allocations for July. We placed some inquiries with a European supplier, but the producer told us that they are not able to offer any material to Libya for July,” the buyer stated. A Tunisian converter said that they are still waiting to receive new prices for homo-PP injection from a Middle Eastern source, adding that they believe that their supplier will announce a €20/ton hike for July. “Ramadan is a traditional high season for us and we have a good number of orders to fulfill. Supply is a bit limited in Tunisia these days,” the buyer commented.