African PP, PE markets on a weak note for 6 months
In North Africa, three Middle Eastern producers announced their new PP and PE offers to Egypt with rollovers to decreases as demand was not up to expectations despite picking up slightly after the holidays. Early sell ideas from a Saudi major were also heard at stable levels from August, but most buyers expect to see some downward adjustments over the short term.
Meanwhile, Tunisian players received new PE prices from the Saudi major with rollovers to €20/ton decreases over August. The source pointed to the limited demand that has been affected by the unfavorable exchange rates and stated that lower done deals levels are obtainable.
The Saudi major’s new offers to Algeria came with rollovers from the previous month while a trader in Morocco reported receiving €10-40/ton discounts from a different Saudi producer. The regional players reported that demand has showed only a marginal recovery after the Eid Al-Adha holidays.
In West Africa, the Nigerian producer, ELEME, kept its offers for PP and PE unchanged from its revised levels in August as buying remained muted stemming from the rainy season. Disregarding the small increases applied only on HDPE film and blow moulding in June, the producer has either been keeping its PP and PE prices stable or implementing some price cuts for the last 6 months.
In East Africa, several Saudi producers announced their new offers to Kenya with rollovers to $20-30/ton decreases compared to their latest levels.
Players reported weak market sentiment as Kenyan authorities imposed a 16% value added tax (VAT) on all petroleum products and added that they expect no upward price movement over the short term.
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