10 July, 2018
Players operating both in the Middle Eastern and African markets have received July PP and PE prices with mostly rollovers to decreases, as was the case in June. Although some suppliers attempted for small hikes on their initial announcement levels, several buyers concurred that discounts would be obtainable on deals as the overall sentiment remained weak in the face of stagnant demand.
In Africa, Kenya-based traders reported that they received July PP and PE offers from a major Saudi producer with rollovers to $10-40/ton decreases on the month. “Demand remains limited and purchases are on hand-to-mouth basis. Trading activities have also been affected by the unfavorable weather conditions in Kenya,” a seller noted.
In Algeria, a trader received new PP offers from a Saudi major with $20-30/ton increases from June. He opined, “The producer has limited PP allocations and we were informed that they are facing a technical problem with all PPBC and PPRC products. We are waiting to receive new PE offers with mostly rollovers.”
Meanwhile, Nigeria’s ELEME rolled over its July PP and PE offers to its own market. A source from the producer pointed to poor demand amidst heavy rains in the country. “The rainy season is likely to last until September. Hence we don’t expect demand to improve soon,” a trader added.
As for the Middle East, Lebanon buyers received initial July PP and PE offers from regional producers with rollovers or $20-40/ton decreases from June. An agent of a Middle Eastern producer noted, “Demand is slower while supply levels are comfortable.”
In the United Arab Emirates, a few converters reported, “A major Saudi producer approached the market with rollovers to $10-30/ton decreases for PP and LDPE while lifting its offers by $20-40/ton for LLDPE and HDPE film when compared to June. However, other Middle Eastern producers applied rollovers or decreases on their new PP and PE offers. Demand is muted due to summer holidays and we believe that July deals will be concluded with some reductions in the days ahead.”
In Jordan, a Saudi major reduced its July offers by $20-40/ton for LLDPE film while applying increases of $10-20/ton for HDPE and LDPE film. An agent of the producer opined, “Trading activities are slightly better when compared to the Ramadan period. However, demand towards end products is still sluggish.”