Tea prices edged up at the weekly East African tea auction as Kenya and Egypt announced an end to a three-week standoff over tariffs, traders said Tuesday October 16.
"There was a good general demand, which strengthened as the sale progressed," the Africa Tea Brokers (ATB) said in a market report. The report said that news of Egypt's lifting of a 30 percent tariff was well received by the market.
"Activity on the auction floor became spirited as the news came in, and the market made general gains with the full return of Egypt," an Egyptian agent told AFP.
The ATB report said Britain and Egypt, traditional large buyers of Kenyan tea, were more active during trading on Monday than the previous week. High-level Kenyan and Egyptian officials announced at a press conference here Monday that the tariff on tea had been lifted earlier in the day by Egyptian authorities, to be followed by more consultations by a joint team from both governments.
During Monday's trading, brighter BP1s appreciated by up to $0.15 and mediums were irregular with some lines gaining up to $0.14, while inconsistent quality affected other categories, the ATB report said.
"Brighter PDusts were irregular with quality, but on balance firm, with mediums and lower mediums a strong feature that gained up to $0.26 dollars and $0.19, respectively". In the secondary catalogues, most descriptions sold at firm to dearer rates, the ATB report added. — (AFP, Mombasa)
© Agence France Presse 2001
© 2001 Mena Report (www.menareport.com)
