Just as oil prices continue their downward trend and Nigerian government revenues show signs of resilience, the global price of polyethylene is bucking the trend. The price of polyethylene has increased by 4.6% to $1,056/mt since March. Polyethylene, which is the base raw material for plastics and jute bags is critical to the survival of FMCGs in Nigeria. Sugar, rice, flour etc. can only be transported in these bags. Any disruption to the supply will ground these companies
The Indorama Petrochemical plant in Nigeria is only able to meet an estimated 28% of the country’s total demand. We are expecting downward price movement once the Dangote Group Petrochemical plant is complete in 2020.
The slides address these and other issues in the domestic and global commodity markets.
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