African players report December PP, PE prices from the Middle East
According to a trader in Tunisia, a major Saudi Arabian producer followed different pricing policies for their December PP and PE offers. The producer’s new PP prices indicate around €60/ton decreases but their PE prices rose €50-70/ton for the month.
The trader commented, “The Saudi producer issued increases on their PE prices, pointing to their limited supplies for this product. We believe that they also direct their quotas to the markets where they can achieve relatively better margins than Tunisia. Meanwhile, PP prices continued to record decreases amidst ample supplies and slow demand.” According to him, overall demand is not all bad therefore, they are planning to make some purchases in the days ahead.
In order to track weekly developments in Africa’s PP market, please see our bi-weekly Polymer Digest Africa Weekly PP Analysis (For members only)
In Kenya, buyers started to report new PP and PE prices from a major Saudi producer. According to the reports, the producer’s new PE levels represent rather modest decreases of $20-50/ton while their PP prices indicate hefty decreases of $110/ton.
A converter operating in Nairobi remarked, “Demand is below moderate in Kenya due to higher dollar exchange rates and approaching year-end holidays. Meanwhile, availability is comfortable with buyers meeting their needs without any problems.” According to him, weak market conditions are likely to push traders to issue further discounts on their offer levels. “On another note, interest rates at the Kenyan banks rose and we believe that this situation will further magnify the problems regarding import purchases,” he further added.
In order to track weekly developments in Africa’s PE market, please see our bi-weekly Polymer Digest Africa Weekly PE Analysis (For members only)
Another Kenyan converter also highlighted, “Demand is weak and supplies are sufficient in the market. Higher exchange rates continue to hinder sales. We do not expect any revival on demand given the approaching year-end holidays. Meanwhile, higher interest rates hindered trading activities even further.”
To track weekly developments in Egypt’s PP market, please see Egypt Weekly PP Analysis (For members only)
In Egypt, several Middle Eastern producers issued their new December PP and PE prices. For PE, regional producers approached the market with rollovers to $10-40/ton decreases when compared with their initial November levels. For PP, new prices recorded up to $160/ton decreases on a month over month basis. A major Saudi Arabian producer issued decreases of $10-40/ton on their PP prices while the rest of the regional producers’ decrease amounts were greater at around $30-160/ton for the month.
Despite some regional producers’ comments about having limited quotas, Egyptian players feel confident they will achieve lower levels in the days ahead, especially from a major Saudi producer, whose prices stand at the high end of the overall PP and PE ranges.
To track weekly developments in Egypt’s PE market, please see Egypt Weekly PE Analysis (For members only)
A distributor commented, “The local market has been slow for weeks while import prices indicate decreases for the month. The market is not promising with muted demand and players voice further decrease expectations, pointing to the ongoing liquidity issues and year-end financial book closures. Plus, December will be a rather short month in terms of working days given the year-end holidays in most global markets.”
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