A major Saudi producer reveals March PP, PE prices to Egypt
According to a converter operating in Gharbeia, the new prices indicate increases from February. “Overall market sentiment has been firming therefore, these increases are not surprising. Meanwhile, local market prices also have recorded hefty increases given tight availability and improved demand. We anticipate that the market will improve further in the upcoming days. At the moment, we are waiting to hear from the rest of the regional producers regarding their March pricing.”
Meanwhile, another converter operating in Cairo noted that the producer’s new prices indicate increases of $30-50/ton for PE and $20-30/ton for PP when compared to the Saudi producer’s initial February levels. “When considering stabilizing crude oil prices and improving demand, we had already been expecting higher prices for March. However, we still believe that done deal levels can be achieved at lower levels through negotiations,” he added.
A distributor also commented, “Given the limited supplies and globally firming trend, players were expecting such hikes from the producer. Meanwhile, distribution market levels have also moved up by EGP100-200/ton ($13-26/ton) since the end of last week. Some players claim that their previously purchased import cargoes have started to arrive to the distribution market while some traders still stand firm on their prices. We believe that the economic decisions that will be taken by Central Bank will determine the market conditions in the days ahead. We believe that difficulties open letters of credits are drawing near to their end and that prices might see further increases as credit restrictions ease.”
A film products manufacturer in Cairo said, “The Saudi producer’s announcements came in line with expectations given the firming market trend. Before taking a position, we want to wait until we hear from other regional producers.”
Looking at the Saudi Arabian producer’s March prices, they stand at $1200/ton for PP raffia, indicating $50-150/ton increases from late February, PP injection stands at $1200-1230/ton, up by $80-150/ton, PP film is at $1220-1230/ton, indicating increases of $60-80/ton and PP fibre is at $1250/ton, up by $80/ton. Meanwhile, the producer’s PP random copolymer injection offers are $70/ton firmer at $1300/ton. All offers are on CIF Alexandria, 90 days deferred payment basis.
For PE, the producer’s prices indicate increases of $50-80/ton when compared to late February levels. Price wise, they stand at $1270/ton for HDPE film, LDPE film and LLDPE c4 film while they are at $1280/ton for HDPE blow moulding with the same terms.
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