Post by maxdolista on Nov 14, 2013 22:11:52 GMT 1
It is interesting to read so many offers for PKS Export from Nigeria. I have been working in the PKS market in Nigeria for over 2years and I can confidently say that I have been to every location in the country that can boast of quantities mentioned in the posts. I am also aware of the successful shipments that have left the shores of Nigeria. However, the reality is that many potential suppliers underestimate what it entails to move even 1000MT of PKS to the exit port.
Sadly, potential buyers/exporters are now weary because of failed promises made by (Nigerian suppliers) of their ability to deliver large quantities of PKS within unrealistic time frames. There are regions in Nigeria that have extensive palm plantations and palm oil processing depots. These regions are the primary source of PKS in the country and many can boast of large quantities. However, the challenge is the archaic methods used during the harvesting of the the palm bunch, extraction of the palm oil, cracking of the palm kernel and separation of the shell from the seed.
It is not impossible to supply 10000MT of PKS in one month. The question is how long will it take before that can be done consistently. I have seen suppliers cause potential exporters significant losses due to lack of disclosure and attention to detail. Vessels ordered with nothing to pick up etc. I want to use this opportunity to encourage suppliers to do a thorough job with securing their sources, logistics, storage, cleaning process, port operations and equipment. Having absolute control of these factors are crucial to a successful PKS export transaction.
I saw prices of $40 - $50 per MT listed somewhere in the threads. I will like to point out that those were FOB prices ad they don't work anymore. My average prices as of 14th November, 2013 are FOB $60 - $65 and CIF $115 - $120 to most ports in Europe. The reason is that the sourcing of PKS by foreigners has raised awareness and it is costing more to buy the PKS. The cost of logistics has remained about the same while port costs have also spiked. I remember when we began sourcing in Nigeria, people were burning the commodity and it seemed like it was a burden to them. Nowadays, they see it as another black gold!
Sadly, potential buyers/exporters are now weary because of failed promises made by (Nigerian suppliers) of their ability to deliver large quantities of PKS within unrealistic time frames. There are regions in Nigeria that have extensive palm plantations and palm oil processing depots. These regions are the primary source of PKS in the country and many can boast of large quantities. However, the challenge is the archaic methods used during the harvesting of the the palm bunch, extraction of the palm oil, cracking of the palm kernel and separation of the shell from the seed.
It is not impossible to supply 10000MT of PKS in one month. The question is how long will it take before that can be done consistently. I have seen suppliers cause potential exporters significant losses due to lack of disclosure and attention to detail. Vessels ordered with nothing to pick up etc. I want to use this opportunity to encourage suppliers to do a thorough job with securing their sources, logistics, storage, cleaning process, port operations and equipment. Having absolute control of these factors are crucial to a successful PKS export transaction.
I saw prices of $40 - $50 per MT listed somewhere in the threads. I will like to point out that those were FOB prices ad they don't work anymore. My average prices as of 14th November, 2013 are FOB $60 - $65 and CIF $115 - $120 to most ports in Europe. The reason is that the sourcing of PKS by foreigners has raised awareness and it is costing more to buy the PKS. The cost of logistics has remained about the same while port costs have also spiked. I remember when we began sourcing in Nigeria, people were burning the commodity and it seemed like it was a burden to them. Nowadays, they see it as another black gold!
