2025 Week 05

Market Overview

The African polymer markets have seen mixed price movements over the past week, with polyethylene (PE) and polypropylene (PP) prices trending upwards in certain regions due to tightening supply, while polyvinyl chloride (PVC) and polyethylene terephthalate (PET) markets remain under pressure from economic challenges and global competition. Sustainability efforts, especially in South Africa, continue to shape the long-term outlook for the industry.

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Polyethylene (PE) Market Update

West Africa

Nigeria: PE prices surged by $30 to $100 per ton last week, particularly for HDPE film. Supply shortages from key suppliers in the Middle East and the U.S. have contributed to this upward trend. However, inflation and rising costs of imports remain a concern, putting pressure on overall demand.

North Africa

The North African PE market has been adjusting to competitive pressures, with U.S. imports pushing prices lower in late 2023. While local markets continue to stabilize, oversupply remains a challenge.

South Africa

The South African plastic packaging films industry, heavily reliant on PE, is projected to grow at a CAGR of 3.67% through 2029. Growth is being fueled by increased demand from the food industry and a shift towards lightweight, recyclable materials.

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Polypropylene (PP) Market Update

West Africa

Nigeria: PP prices followed a similar trend to PE, experiencing moderate increases due to supply constraints. While demand remains lukewarm, producers have successfully pushed for price hikes amid limited availability.

South Africa

The South African market is witnessing growing adoption of polypropylene films, driven by new packaging regulations and sustainability targets. The Extended Producer Responsibility (EPR) regulations are encouraging increased recycling and the use of eco-friendly alternatives.

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Polyvinyl Chloride (PVC) Market Update

North Africa

North African PVC prices have faced downward pressure since late 2023 due to an influx of U.S. imports, increasing competition and keeping local pricing subdued.

South Africa

While PE and PP dominate the South African packaging industry, PVC continues to find applications in the construction and industrial sectors. However, demand remains steady rather than experiencing significant growth.

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Polyethylene Terephthalate (PET) Market Update

South Africa

Recycling Expansion: South Africa’s PET recycling industry is set to grow with Petco’s partnership with Extrupet, aiming to add 15,000 tons per year of recycled PET (rPET) capacity in the Western Cape by 2025.

Market Growth: The demand for PET in the plastic bottle segment is rising. The South African plastic bottles market, valued at USD 57.97 million in 2025, is expected to reach USD 75.91 million by 2030, driven by growth in beverage and personal care sectors.

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Looking Ahead

The African polymer markets are entering a period of mixed dynamics. Supply shortages may push prices higher for PE and PP in some regions, while PVC and PET markets could remain flat or slightly bearish due to external competition and economic uncertainty. Sustainability efforts in South Africa are likely to gain momentum, with increased investments in recycling and circular economy initiatives.

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Final Thoughts

With evolving supply chain challenges and shifting regional demand, polymer buyers and sellers should closely monitor price movements in the coming weeks. If supply constraints persist, price hikes in PE and PP could extend into February, while PET and PVC markets may remain steady or slightly bearish. Sustainability remains a key focus, especially in South Africa, where investments in recycling continue to shape the market.

Stay tuned for next week’s update!

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Disclaimer

The insights provided in this newsletter reflect the latest market observations and are intended for informational purposes only. Market conditions are subject to change, and users should conduct their own assessments before making any commercial decisions. The author assumes no liability for outcomes based on this information.