Plastics suppliers in Africa are pushing for price increases due to higher energy costs caused by the Ukraine/Russia conflict and the potential to reduce supply in an already tight market. Although most grades of PP and PE saw price increases in March, basic demand in the market remained weak.

Production, delivery issues reported in Nigeria

New quotes in west Africa's largest polymer market have increased by $10-80/ton from the previous month, largely due to increased cost pressure. Although Nigerian market participants continue to report delivery delays, the market has “sufficient” supply, balanced by prevailing demand conditions.

PE quotes from Nigeria's domestic producer ELEME were up NGN 40,000/ton ($98/ton) from the previous price while PP quotes were unchanged in March. Traders said the situation Material shortages led to the suspension of operations and deliveries earlier this month. High transportation costs due to higher fuel prices are also one of the factors affecting local prices.

Buyers prefer to stay cautious despite rally in Kenya

In Kenya, East Africa's largest economy, HDPE film and LLDPE C4 film quotes for March surged by $100-120/ton month-on-month and were reported at $1560-1580/ton and $1540, respectively. -1560 USD/ton. Quotation for LDPE film is also almost unchanged at 1580-1600 USD/ton. Quote PPH raffia and inj. also increased by 120 USD/ton compared to the previous month, to 1570-1580 USD/ton CFR Kenya.

Kenyan traders note that sellers have maintained their bullish stance despite limited buying demand from end consumers. One trader said: “Global uptrend in prices and tight supply in the region have guided prices in March. We are not overbought urgently and watch the market to see where prices will go. where in April.”

North Africa Market Turns Into March

After a month of price decline, North Africamarket turned in March. Due to rising costs and tighter supply, PPH quotes raffia and inj. New arrivals in Algeria increased by 40 USD/ton compared to February, to 1640-1650 USD/ton CFR Algeria. HDPE film and LLDPE C4 film have increased by 30-60 USD/ton from last month, to 1600-1620 USD/ton and 1580-1600 USD/ton, respectively. LDPE film witnessed the strongest price increase and increased by 160-180 USD/ton compared to February, to 1930-1950 USD/ton CFR Algeria.

The March quotes in Tunisia and Morocco are collectively estimated at EUR 1350-1380/ton HDPE film, EUR 1520-1620/ton LDPE film and EUR 1330-1380/ton LLDPE C4 film, all of which represent an increase in comparison to other countries. Prices are reported for the month of February.

Meanwhile, demand remained largely down in North African markets, as most buyers limited their purchases. Tunisian traders updated on their bearish forecasts for trading while Algerian traders reported lower bids from buyers, challenging the upside in the market.