A major Saudi producer lifts up April PP, PE prices to Egypt
However, during the month of March, the producer had to step back from their offer levels amidst weaker demand on the back of the increasing USD exchange rate against Egyptian pound. They adjusted down their March levels by $50/ton for PP and $20/ton for PE. Therefore, when comparing the producer’s new April levels with their most recently adjusted March levels, the April announcements indicate larger increases of $110-120/ton for PP and $70/ton for PE.
The producer currently offers HDPE, LDPE and LLDPE film at $1260/ton, HDPE b/m at $1290/ton and HDPE injection at $1310/ton on CIF Alexandria, 90 days basis. Meanwhile, their PP film and fibre prices are at $1100/ton, PP raffia and injection prices are at $1070/ton, PPBC injection offers are at $1160/ton, PPRC injection is at $1250/ton and PPRC injection (Type 3) is at $1310/ton with the same terms.
A converter operating in Gharbeia noted, “These increases came as no surprise at all. Meanwhile, we anticipate the local market levels to react to the higher announced April import prices since the depreciating EGP is also pushing distributors to lift up their prices. On another note, we see weak end demand for PP film products but we hope to see some improvements before Ramadan starts in June.”
Meanwhile, an injection products manufacturer confirmed the higher April levels from the Saudi major and added that they struggle to secure sufficient volumes, especially in the distribution market.
A distributor also verified the April price hikes and added that they are planning to make some fresh purchases this month. “However, before committing to any new cargoes, we first want to hear the rest of the regional producers’ offers and wait a little bit until the market levels settle,” he further added.
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