PE sustains soft path in October across Africa, Mid-East
Oct. 16, 2018
Import PE prices in the markets of Africa and the Middle East surfaced with rollovers to drops for another month. October has been the 7th consecutive month that the market followed a similar trend. Muted trading activity ahead of the year-end and comfortable supplies weighed down on suppliers.
In the Middle East, two Saudi producers revealed their offers with rollovers to decreases of up to SAR150 ($40/ton) to their local markets.
Regional producers including a Saudi Arabian major also issued $10-20/ton drops for all PE products to Jordan and Lebanon. “Even after the recent adjustment, PE offers are still deemed as high. We expect to conclude lower deals in view of harsh economic conditions ,” a source in Jordan mentioned. Players in Lebanon attributed slow demand to the political instability stemming from the government formation deadlock.
Similarly, buyers in Africa received stable to lower PE prices for the new month. In Egypt, a Saudi Arabian major applied $30/ton drops on LDPE film and $50/ton on HDPE b/m, while they elected to keep their LLDPE and HDPE film offers flat from September. A manufacturer noted, “The producer agreed to offer minor discounts to improve their sales despite firming costs.” More suppliers are projected to follow a similar pricing policy.
Fresh import PE offers from the Middle East represented declines of $10-50/ton in Algeria and Kenya. In Nigeria, offers were down by $40-60/ton for HDPE film but stable for other products, while the Saudi major rolled over their PE offers to Tunisia.
Players in Kenya reported that demand was very low and they will not engage in fresh purchases as they are using their stocks left from the previous month. An Algerian distributor highlighted, "Supplies are comfortable while demand remains muted. Buyers are still cautious and holding back their PE purchases.”