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(ICIS) -- Trade of polyethylene (PE) and
polypropylene (PP) has come to a standstill in Nigeria, as most businesses
remain closed during the nationwide strike against fuel price hikes, a producer
based in the country said on Wednesday. Nigerian unions declared an indefinite
strike on 9 January after the government’s removal of a fuel subsidy effectively
doubled fuel and transport costs. Nigeria is one of the four biggest PE/PP
markets in Africa, the others being South Africa, Egypt and Kenya.
Business transactions have come to a standstill, the producer source told
ICIS via email: “The year has not started well in Nigeria. Right now, the
economy is paralysed. “Banks, ports [air and sea], schools [and] offices are all
closed. Right now, it’s a fragile situation.”
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A Europe-based distributor that regularly exports to Nigeria said:
“Customers have not been working for two days. It is very new, and it will have
an impact, depending on how long it lasts. It could change overnight.”
The producer expressed its concern that the issue would not be resolved
within a few days: “It looks [like] it will take some time. We need better luck,
and plenty of it.”
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Slow demand from the key market of Nigeria could push prices down in the
western African region, market sources said. According to ICIS assessments,
prices in the region are in the range of USD1,330-1,520/tonne
(EUR1,037–1,186/tonne) CFR (cost & freight) for three different PE film
grades.
mrcplast.com
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