Ghana PE, PP demand suffering on weak currency, seasonal factors

08 April 2014 17:25  [Source: ICIS news]

LONDON (ICIS)--Ghanaian demand for polyethylene (PE) and polypropylene (PP) is suffering because of a weak local currency and the early onset of the monsoon this year, sources said on Tuesday.

“Ghana converters reported less than normal demand,” a producer based in Nigeria said.

A Ghana-based distributor said: “Demand is worse than usual at this time of year.”

This source added that February to April is usually a good period for the market, but it has not been the case this year.

“A major problem is the depreciation of the Ghana cedi, it is the main reason for the slowdown,” the source added. “The economy is going down, and it’s the rainy season.”

Weather conditions have had an early impact this year.

“This year it was the early monsoon,” the distributor said.

“Usually it [the monsoon] starts in May, but this year it was the end of February. The weather forecast foresees that it will be heavy rainfall [in the coming weeks].”

By: Jo Pitches
+44 208 652 3214

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