14 October 2009 21:16 [Source: ICIS news]
Most players in the northern and eastern Africa markets said that imports from the US and South Korea had now largely dried up with the beginning of Chinese buying interest.
However, PE and PP prices slipped $20/tonne as Middle Eastern suppliers were forced to readjust their offers mid month in order to protect their market, sources said.
“The market is volatile, and customers are cancelling orders placed in the last weeks to cash in on the dropped prices,” one buyer in Kenya said.
However, downward pressure on prices was much more apparent in the western African market. Demand had come to a standstill as the banking crisis impacted liquidity in key countries, such as Nigeria, while heavy rain over the southern and costal regions continued to hamper any strong pick up in demand.
“Traders have large foreign stocks,” one reseller said in the region. “They cannot move it because there is no demand. No one knows where prices will be next month, and this is why buyers are waiting.”
PE prices in the region slipped $10-60/tonne, with high density PE (HDPE) sustaining the largest fall, moving to $1,250-1,300/tonne CFR (cost and freight) western Africa from $1,310-1,350/tonne CFR, according to global chemical intelligence service ICIS pricing.
Meanwhile, PP prices in western Africa also sustained large falls of $30-50/tonne, with homopolymer PP slipping to $1,210-1,250/tonne CFR western Africa from $1,240-1,300/tonne.
($1 = €0.67)
For more on PE or PP visit ICIS chemical intelligence
ICIS has launched weekly pricing reports in Africa for polyethylene and polypropylene. For more information contact Nadine Spoeri
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