A look back at European PP, PE markets in 2021: Supply snarls push prices to record highs

2021 has proved to be a more challenging year for industry participants than 2020 was, with both spot PP and PE prices skyrocketing to unprecedented levels in Europe. PP and PE markets hit an all-time high in March with PP and LDPE markets hovering around their peaks since then.

Pandemic-driven setbacks, pent-up demand and rising costs have been all contributing to the bullish run. Most importantly, supply bottlenecks have been the key driver of hefty hikes and had the final say over the course of 2021.

A year of perpetual hikes in monomers

Derivative markets have been well supported by upstream costs amid lower run rates or production issues at regional crackers.

Monthly propylene contracts have settled with increases since January 2021, except for a slight drop in September and rollovers in December. Similarly, ethylene contracts have also been agreed with monthly hikes excluding a cumulative drop of only €18/ton in the September and December settlements.

Short availability pervades PP and PE markets through 2021

After reversing the course in November 2020, PP and PE markets posted 3-digit hikes in the first 4 months of 2021. Prices surpassed their previous peaks in June 2015 by early March and hit an all-time high.

Early in the year, import supplies within the bloc dried up due to the region’s lack of premium over other markets as European markets had failed to catch up with the gains in global markets. Regional availability also shrank due to suppliers’ preference to export to the higher netback regions and a slew of force majeure declarations. Hikes gained steam due to a lack of import material, from the US in particular amid the winter storm. A shortage of containers disrupted shipments also from other overseas suppliers.

That is to say, 2021 was marked by a shortage of supplies amid low stock levels at the producer level and lingering logistics mishaps.

Pent-up demand adds to supply limitations

Apart from this, demand for food packaging and pharmaceutical products remained supported by the pandemic needs. Strong demand in the automotive and construction sectors was also driving demand in various segments. Backlog orders at the converter level and increased mobility after easing of lockdown measures kept purchasing activity robust amid trimmed allocations.

Bulk of gains recorded in Q1

PPH and PPBC prices rose by 54-58% during the January-March period, according to ChemOrbis Price Index. This compares to a total increase of 74-78% from January to May, when prices started to come off their peaks.

As for PE grades, LDPE, LLDPE and HDPE film prices rose by around 50-60% in the first three months of 2021 versus cumulative hikes of 70-90% between January and May.

Record-high netbacks lure importers back to Europe in Q2

In April, lingering tightness propelled prices to new highs as exacerbating supply disruptions after the Suez jam encouraged regional suppliers to seek strong hikes. However, buyers grew cautious amid overheated prices and talks of a nearing peak.

This was because an arbitrage window reopened after Europe boosted its premium over other markets. The divergence between Europe and other markets became astronomic as Europe remained relatively unfazed by the broader downtrend in May and June, when other markets dipped to multi-month lows. Juicy netbacks attracted import cargoes to Europe, with the pace of hikes slackening in May.

PE prices saw larger downward corrections than PP

As of June, spot PP and PE markets reversed the course after 7 straight months of hikes after the pressure from competitive import offers mounted.

LDPE remained the tightest grade amid a number of regional force majeures and a lack of imports, while HDPE and LLDPE prices in Italy came under the pressure of aggressive non-European origins. Hence, LDPE posted relatively smaller drops of 16% from May to July. HDPE and LLDPE prices posted 23% drops in Italy, meanwhile.

After hitting an all-time high in May, PP prices in Italy fell by 7-9% until late June, while smaller decreases of 2-3% were seen in Northwest Europe amid limited import availability.

Q3 marked by import delivery delays and supply chain disruptions

The emergence of competitive import origins did not have a long lasting impact as delivery delays of previously purchased import cargoes kept spot availability tight in Europe. Hence, regional producers could keep prices in check during Q3 and avoid major price corrections.

Import cargoes were delayed amid logistical backlogs and longer than usual lead times. Knock-on effects of Suez blockage, floods and port congestions added to the supply chain disruptions. Meanwhile, skyrocketing freight rates and impaired production in the US after Hurricane Ida led to an increase in import PP and PE prices again in September.

Europe stays above other major markets, what lies ahead?

Although import offers lost competitiveness, regional availability started to improve amid returning capacities in Europe. Suppliers pushed for hikes amid soaring energy costs in Q4, while inflated levels and buying fatigue also prevented prices from spiralling up, unlike the case early in 2021.

According to ChemOrbis Price Index, LDPE, PPH and PPBC markets stand at all-time highs. Since overall PP and PE markets still stand at multi-year highs after coming off their peaks by Q2, prices are believed to be ripe for a correction. Europe has been one of the most attractive regions as sky-high freight rates and other logistics mishaps kept the price disparity between Europe and other markets intact.

Record netbacks in Europe will attract bulky quantities from overseas suppliers. US PE offers are expected to put pressure on Europe’s spot markets in Q1 2022, considering delayed deliveries and growing export volumes from the US.

As for PP, the material flow from Asia may be hindered amid container shortage despite massive capacity additions in China. However, price corrections will be inevitable for this product, as well, amid mounting resistance to inflated prices heading towards 2022.

(Source: chemorbis.com)

December PP, PE offers emerge lower in China, SE Asia

PP, PE players in China and Southeast Asia have received December offers from regional and overseas suppliers with decreases since the beginning of this week. The impact of the new Omicron variant and the recent fall in crude oil prices have added to the downward pressure driven by the ongoing weakness in China’s polyolefin markets.

ChemOrbis Price Index shows that import PP and PE prices in China and Southeast Asia have already been on a downward trend since late October, meanwhile.

Mid-East supplier cuts LDPE offers to China notably

An agent of a major Saudi Arabian producer reported that their supplier cut December
PE and PP prices to China when compared to November. Among all products, LDPE witnessed the largest monthly price reduction of $150/ton while HDPE and LLDPE were down by $40/ton, and homo-PP raffia prices were down by $80/ton.

The agent commented, “China’s polyolefin markets have been under downward pressure from lower crude oil, falling Dalian futures as well as the Omicron variant outbreak. Our sales orders dropped by 50% this year due to our customers’ lower sales and there are no signs of a recovery in replenishing activity ahead of the Chinese New Year. We think all buying activity will remain on a needs-only basis over the near term.”

Further regulations for coal lurk, weighing on Dalian futures

PP and LLDPE futures on the Dalian Commodity Exchange settled lower from November 25 to November 30, witnessing cumulative decreases of CNY523/ton ($82/ton) and CNY624/ton ($92/ton), respectively.

The steady fall in futures prices was mainly due to the government’s renewed signals of further regulations for the prices of coal. Lower crude oil prices also contributed to the weakness, meanwhile. The global benchmarks plunged to their lowest levels since September on Friday, November 26 due to growing demand concern amid the Omicron variant.

This has contributed to the weakening sentiment in China’s PP, PE markets, where prices have already been under pressure from limited demand and oversupply concerns amid new capacities.

SE Asian supplier reduces both local and import PP, PE offers

A Southeast Asian producer also applied monthly decreases of up to $100/ton on PP and PE offers to Indonesia while lowering local PP and LLDPE offers to Malaysia more slightly, within the range of $19-24/ton.

Omicron hinders demand recovery in SE Asia

Following the emergence of several Southeast Asian countries from lockdowns or severe restrictions due to Covid-19, demand in Southeast Asia displayed some recovery.

However, the spread of the new Omicron variant is likely to hamper this recovery as renewed control measures may be brought to the agenda, players have started to voice recently.

In China, where demand has been limited amid the off-season, the news about the Omicron variant has also added to the concerns. Several players in the country have reported that the news about the new variant already weighed on demand further.

Not to mention, PP and PE prices are under heavy strain from new capacities

According to ChemOrbis Production News Pro, PE markets remain under aggregated pressure from some 1.9 million tons of additional capacity since the second half of this year. Meanwhile, a total of more than 5 million tons of PE capacity was planned to come onstream throughout 2021, 64% of which is located in China and 35% in South Korea, needless to say.

As for PP, ChemOrbis Production News Pro suggests that more than 12 millions tons of PP capacity was slated to start up throughout 2021 in Northeast Asia, 77% of which is located in China and 23% in South Korea.

(Source: chemorbis.com)

Stats: China’s Q3 PE imports recover on quarter

Data from ChemOrbis Import Statistics show that China’s total PE imports in the third quarter of 2021 reached slightly above 3.640 million tons. The total volume indicated a slight increase of 7% from the previous quarter. The Q2 volume had been the lowest since the last quarter of 2017.

HDPE makes the largest contribution to total Q3 volume

ChemOrbis data also show that China imported nearly 1,695 million tons of HDPE in the July-September period. This volume made the largest contribution to the country’s total PE imports in the third quarter.

Saudi Arabia was the main HDPE supplier of China during the third quarter with 338,441 tons, meanwhile.

HDPE was followed by LLDPE and LDPE imports with total Q3 volumes of around 1,2 million tons and 745,000 tons, respectively.

Q3 PE imports fall year-on year

While total PE imports in the July-September period posted a recovery on a quarterly basis, they were down on a year-on-year comparison.

ChemOrbis data suggest that total PE imports in Q3 2021 fell nearly 28% from the same period of 2020 when the volumes reached an all-time high of 5 million tons.
(Source: chemorbis)

Nov hikes send Europe’s PE markets to multi-month highs

In Europe, PE sellers could obtain €80-100/ton increases on November deals on the back of higher costs and supply constraints for some grades. Sellers have mostly trimmed their initial hike requests as increases surpassing the ethylene’s upsurge have proved unworkable amid slow purchasing activity.

Recent hikes have pushed prices in Italy and West Europe to their highest levels since around June-July, according to ChemOrbis Price Index data.

Some grades tighter than others

LLDPE, MDPE and HDPE grades have been reportedly tighter than other grades amid disrupted overseas supplies. A lack of sufficient imports from the US for mLLDPE C6 has pushed prices significantly higher. Some sources selling Middle Eastern material reported being sold out due to their trimmed allocations.

US PE back in the game, not necessarily at aggressive levels

Meanwhile, import US offers have re-emerged recently, with HDPE film being traded at €1610-1650/ton on DDP basis, with delivery in January. This was deemed as the reflection of growing supplies in the US.

Still, prices are at par with or close to the European levels and there are no signs of the market being awash with US material. Locally-held US PE cargoes also trade at par with the European origins.

Buyers sit on comfortable stocks

Despite tightness for some grades, the PE market did not absorb initial hikes beyond €100/ton. Overall buying appetite has been calm and remained tied to basic needs, with buyers feeling no urge to buy as they sit on comfortable stocks.

Converters did some pre-buying during October amid firmer voices, while some of them reported that they are still receiving previously secured cargoes amid delivery delays. A lack of truck drivers and lower cargo handling speed due to the lack of manpower at ports have been leading to longer than usual transit times.

That is to say, converters will be focusing more on the stock management, bearing in mind that demand will gradually slow down towards the year-end and logistical hurdles will prevail.

Skepticism about further hikes in Dec

Sellers voiced firmer expectations for December, citing rising costs and a lack of competitive import offers. Despite firmer voices, there remains uncertainty if buyers will be back to replenish heading towards year-end festivities.

Some players are skeptical about the absorbability of further hikes, considering comfortable regional availability, year-end lull as well as container freight rates that came off their peaks in September.

(Source: chemorbis)

Vietnam PP prices propelled by bullish China market, improved demand outlook

In Vietnam, import PP prices have been rising for the past two weeks after a month-long stability. This has been in line with the bullishness in the China PP market amid the country’s energy cuts.

Lower import availability due to scarce arrivals, as well as stronger energy values have also been cited as other drivers of the market.

On top of that, the demand outlook in Vietnam has improved since the second half of September started amid hopes of easing Covid-19 restrictions, also contributing to the weekly gains.

The commercial hub Ho Chi Minh City will start lifting its coronavirus curbs as October kicks off, matching expectations.

Weaker economic data urged easing restrictions

Vietnam’s latest economic data explains why the government leaves the zero-Covid policy behind.

The country is taking steps to revive its economy by allowing more business and social activities although experts worry that it may be too early to do so considering the low vaccination rates in most of Southeast Asia.

According to data from Vietnam’s General Statistics Office (GSO), the country’s gross domestic product fell by 6.17% year-on-year in the third quarter, down from an increase of 6.57% in the second quarter.

PP prices up by around $20-45/ton from last week

The overall range for import homo-PP raffia and injection prices on CIF Vietnam basis has been assessed $20/ton higher from last week at $1200-1290/ton and $1220-1290/ton, respectively.

A few players said, “Import PP offers have firmed up by $20-30/ton on a weekly comparison. The number of import PP offers has remained limited. Meanwhile, we are still facing shipment issues. Freight rates are quite high and it is getting harder to find available ships nowadays.”

As for locals, homo-PP raffia prices were also up by VND300,000-1,000,000/ton ($13-44/ton) from last week to be assessed at VND31,800,000-33,500,000/ton ($1272-1340/ton without VAT) on FD Vietnam, cash basis.

A converter noted, “Local PP prices have slightly increased, following higher import prices. Demand has improved recently due to the expectations that the government will relax the Covid-19 curbs as of October in order to revive the economy which has been under pressure of partial lockdowns.”

(Source: Chemorbis)

An Phat Holdings – 19 years of celebration (September 27th 2002 – September 27th 2021): A journey towards a sustainable future

We often refer to the saying “A journey of a thousand miles begins with a single step” to deeply affirm that all great successes are created from simple actions. For An Phat Holdings (APH), this proverb is more meaningful than ever because looking back the journey of 19 years, we clearly see the growth and development of APH, from a packaging manufacturer to the leading high-tech and environmentally friendly plastic Group in Southeast Asia, operating in the following fields: compostable materials and finished products; engineering plastics and building material plastics; precision engineering and molding; raw materials and chemicals for plastic industry; industrial real estate and logistics, etc. The achievement of An Phat Holdings today have marked the efforts and enthusiasm of the Founders, Board of Management, and more than 5,000 employees of the Group.

September 27th 2021 is not only An Phat Holdings’s 19th birthday (2002 – 2021), but it also marks “the journey towards a sustainable future” of the Group. An Phat Holdings has made great strides to build a firm foundation and make breakthroughs in the new era.

Today, looking back at this journey, the great achievement of 19-year-old An Phat Holdings is the thorough preparation to not only face the challenges of COVID-19 but also implement strategic plans effectively. That is reflected in the strength, confidence, and solidarity in COVID-19 prevention activities so that the Group has not recorded any infections. An Phat Holdings’ Board of Management has made a great effort to ensure that 100% of employees are vaccinated, ensuring safety for  the Group’s employees

The 19-year-old An Phat Holdings also show the high determination of the Board of Management and more than 5,000l employees to fulfill business targets and make progress for major key projects.

For the industrial real estate segment, APH has basically completed the site clearance for An Phat 1 Industrial Park, moved to the stage of ground leveling and completing the infrastructure, preparing the premise for the next phase of commercial operation in 2022. The strategic cooperation with Actis – Britain’s leading investment fund will open up new prospects for An Phat Holdings in the field of industrial real estate, factories and warehouses for lease. An Phat Complex IP and An Phat 1 IP will become the key “green” industrial parks of Hai Duong province.

An Phat 1 Industrial Park has achieved many important steps, preparing the premise for the phase of commercial exploitation in 2022
Quỹ đầu tư Actis và An Phát Holdings kí kết thỏa thuận hợp tác phát triển trong lĩnh vực
Actis and An Phat Holdings signed a cooperation agreement in industrial real estate segment, warehouses and logistics.

For the PBAT material manufacturing plant project, the implementation is taking place quickly and on schedule. APH has been granted an investment registration certificate by the Hai Phong IP Management Authority for the project in Dinh Vu Industrial Zone (Hai Phong). The Group also registered its PBAT and PBS green material patients for intellectual property protection, becoming the sole company in possession of these production technologies in Vietnam.

It is expected that in the fourth quarter of 2021, APH and Technip Energies Group – the world-leading construction contractor will complete the Front End Engineering Design (FEED), preparing for the  plant construction in early 2022. All employees at factories, offices and branches in Hanoi, Ho Chi Minh City, Hai Duong, Yen Bai, Hung Yen, USA, Korea, Singapore, etc. have been making constant efforts to achieve positive business results in the first 8 months of the year.

Niềm vui lao động tại Công ty CP Nhựa An Phát Xanh
The joy of work at An Phat Bioplastics JSC.
Smile of worker
Smile of worker
An Phát Holdings đã xây dựng hành trang vững chắc, sẵn sàng bứt phá trong giai đoạn mới
An Phat Holdings has built a strong foundation, ready to make a breakthrough in the new period

The upcoming 2022 will be an important historical milestone when An Phat Holdings turns 20 years old. With a strong foundation in corporate governance, the bravery and wisdom of the Board of Management, and the enthusiasm and constant efforts of employees, An Phat Holdings will definitely “step firmly” towards the sustainable and development future.

Happy 19t birthday of An Phat Holdings!

Constant Innovation, Steady step forward!

African PP, PE markets extend gains into sept on tightness

In Africa, PP and PE offers for September were firmer as compared to August, largely as a result of diminished supplies from the Middle Eastern and Asian suppliers. Although demand was little changed from last month, the tight supply situation dictated the higher pricing across the regional markets.

No Saudi availability in Nigeria

The biggest polymer market in West Africa made a strong start to September, as a major Saudi supplier cut allocations to Nigeria by a large margin, citing their supply and logistics problems. Meanwhile, new offers for South Korean and Indian materials indicated large increases over August. “Korean supplier’s allocation is also quite limited,” a trader reported. “Limited supplies and higher freight rates fuelled sharp increases,” another trader said.

The latest import offers in Nigeria were at $1690-1710/ton for PPH raffia and inj., $1790-1800/ton for PPBC inj., $1900/ton for PPRC inj., and $1590-1600/ton for LLDPE C4 film, HDPE film, HDPE b/m, and HDPE inj., all on CFR Lagos, excluding 10% CD basis.

ELEME announces rollovers to increases

ELEME, Nigeria’s domestic producer, announced rollovers or NGN20,000/ton ($48/ton) increases for PE. For PP, some grades saw very small increases of around NGN400-700/ton. Demand remained disappointing, with buyers purchasing hand-to-mouth.

Accordingly, the latest local offers in Nigeria were at NGN1,012,500/ton ($2464/ton) for PPH raffia and inj., NGN1,079,000-1,084,000/ton ($2625-2638/ton) for PPBC inj., NGN790,000/ton ($1922/ton) for HDPE b/m, HDPE film, and HDPE inj., and NGN816,000/ton ($1985/ton) for LLDPE C4 film, all on ex-Port Harcourt City, cash not including 7.5% VAT.

Asian PP offers in Kenya surge

In Kenya, East Africa’s largest economy, a major Saudi producer’s new PE offers were higher by around $10-30/ton at $1340-1350/ton for HDPE film and LLDPE C4 film, and $1630-1670/ton for LDPE film, CFR Kenya, 90 days. The Saudi major’s PP offers also increased by a similar amount to be reported at $1440-1450/ton for PPH raffia and inj., with the same terms.

Meanwhile, PPH raffia and inj. offers for Chinese materials surged to $1700-1710/ton while South Korean materials were at $1680-1690/ton, largely due to record-high freight costs and an ongoing tightness in supplies.

“Supplies from the Middle East are limited and offers from China and India are very high due to increased freight rates,” a trader based in Nairobi said. The trader also said that they were expecting to see further increases over the near-term, largely due to the ongoing shipping issues and tight availability.

Saudi LDPE, LLDPE unavailable in Algeria

In Algeria, North Africa’s largest oil and gas producer, new HDPE film offers from a major Saudi producer increased by around $70-90/ton over August levels to $1450-1470/ton CFR Algeria while there was no availability for LDPE film and LLDPE C4 film.

The producer’s PP offers, meanwhile, were up by around $50-75/ton from levels in August to stand at $1500-1550/ton, with the same terms.

South Africa market follows suit despite low demand

South African markets saw rollovers to moderate increases ranging from $10/ton to $30/ton as compared to August levels. “Supplies from Saudi producers are very restricted this month and this is supporting the firm trend. But sales are disappointing and demand is still weak,” a trader in Durban said.

The September price range in South Africa was at $1320-1350/ton for HDPE film, $1570-1670/ton for LDPE film, and $1300-1350/ton for LLDPE C4 film, all on CFR Durban, 90 days basis.

(Source: chemorbis.com)

Logistics snarls propel import PP, PE offers higher in Europe

In Europe, players returned to a changing sentiment after summer holidays as prices for non-European origins have been revised upwards in tandem with rising shipping costs amid logistical mishaps. Suppliers from the Middle East, the US and Asia were seen lifting their offers to Europe as September kicked off.

Supply bottlenecks support hikes for import origins

Shipment issues from the Middle East and Asia amid container shortage curbed the import flow to the bloc, which in turn led to diminishing availability.

South Korean PPBC inj. was offered with increases at €1700/ton CIF Italy, 60 days 10 days ago. Meanwhile, a distributor reported hikes of around €100/ton for South Korean material with delivery in September, blaming sky-high freight rates from Asia. US mLLDPE C6 was dealt at €1450-1500/ton DDP Italy, 60 days, indicating €60/ton hikes for August. This is due for arrival in September-October, meanwhile.

Moreover, prices on the low ends faded from the spot market as non-European origins saw hikes in the past weeks. PE offers from Turkey and Central Eastern Europe were adjusted up, which erased some of their earlier losses. A buyer affirmed to have received Turkish LDPE offers above August levels.

Eyes on spillover impact from Hurricane Ida

Adding to the recovering sentiment emanating from lower import availability has been disrupted production at several petrochemical hubs in the US driven by Hurricane Ida. ExxonMobil, Pinnacle Polymers and DowDuPont’s downstream units were taken offline following the issue.

Heading towards the last quarter of 2021, US PE material will remain limited, as was the case during most of the year, amid robust domestic demand and logistical hurdles.

What will be the reflection on European origins?

Fresh September offers from regional sources were pending last week, with expectations centering on a stable to slightly firmer trend. Sellers aim to push for small hikes on tighter grades like LDPE, mLLDPE and PPBC, pointing to the difficulties to procure raw materials.

However, additional hikes may not be absorbed as Europe’s spot markets remain inflated, with buyers lamenting about restricted end orders in certain sectors. Some of them also did pre-buying during summer vacations, while regional PP supplies are expected to improve after lifting of the force majeures. Several players expect prices to move sideways, with firmer non-European prices and logistics issues hindering a possible drop in the short-run.

(Source: chemorbis.com)

China’s import LD, HDPE prices soften after 2 months; LLDPE fares better

After following a stable to slightly firmer trend since early June, import LDPE and HDPE film prices in China witnessed slight decreases during the week that ended on August 13 despite supply limitations from overseas markets, particularly from the Middle- East amid production issues in that region.

The worsening Covid-19 conditions in China and rising logistics costs kept demand slow while support from the cost side also weakened with lower ethylene prices in Asia, weighing on LDPE and HDPE film prices.

As for LLDPE film, prices managed to maintain their stability unlike other PE grades on relatively better demand amid higher food packaging usage during Covid-19 related lockdowns across major Chinese cities.

“While demand concerns persist over downstream markets’ recovery, LLDPE prices have been better supported. LLDPE interest has increased over the other grades as there is higher demand for food deliveries, especially during the recent Delta variant-triggered lockdowns and restrictions across many major Chinese cities. Around 80% of LLDPE goes into film applications such as in food and also non-food packaging,” noted a trader.

Elaborating further, he added, “However, the flip side of rising infections also means that factory production, transportation, and trading activities have been disrupted. Adding to Covid are the current floods across major Eastern and Southern provinces which also crimp activities.”

During the week that ended on August 13, overall import PE prices were assessed down by $10-20/ton from the previous week for LDPE film at $1280-1340/ton, down by $10/ton for HDPE film at $1070-1120/ton, and unchanged at $1070-1180/ton for LLDPE film, all on CIF China, cash basis.

 

(Source: Chemorbis)

August PE, PP offers firm despite soft demand in Africa

In Africa, August offers from Middle Eastern suppliers indicated rollovers or moderate gains as compared to July levels in most regional markets. Although supplies were not ample, weakened demand conditions prevented sellers from seeking large hikes in August.

In Nigeria, a major Saudi supplier’s new offers for August indicated increases of $40-50/ton while LDPE offers were unchanged from their previous levels. Meanwhile, ELEME -Nigeria’s domestic producer- also announced rollovers for August.

“We are waiting to hear from Asian suppliers but they are unlikely to be competitive against their Middle Eastern counterparts,” a trader said, citing increased freight costs.

The trader also reported a log of pending orders from the major producer and said:

“Delayed shipments are affecting the supply levels in the market. Supplies are diminishing fast and this keeps prices firm despite the disappointing demand.”

Access to foreign currency was also reported to have been restricted in Nigeria. In late July, Nigeria’s central bank halted the sale of foreign exchange to money changers. The decision, which was aimed at easing pressure on the nation’s currency, halted the central bank’s supply of $5.72 billion annually.

In Kenya, a major Saudi producer’s new offers increased by $40-50/ton, with the exception of LDPE film grades, which remained stable from July levels. According to daha from ChemOrbis Price Index, this marked the first increase since May.

Players reported slower-than-normal market activities and dwindling end-product sales. “Supplies are not ample but they are enough to meet demand,” a trader said.

In South Africa, offers for Saudi LDPE film were stable from July while HDPE film and LLDPE C4 film offers increased by around $40/ton. The supply availability was largely balanced with demand. “Players are pushing for lower deals, largely due to slow activities,” a trader in Durban said.

In Algeria, sluggish demand overshadowed the fact of limited availability in the region. Accordingly, the latest offers for LDPE film and PPH grades were stable from last month while HDPE and LLDPE C4 film prices dropped by $20-70/ton.

“Activities are slow as buyers are limiting their purchases to immediate requirements,” a trader in Algiers said.

 

(Source: Chemorbis)