Egypt’s EPPC starts offering on USD basis
In line with expectations, the producer had resumed their operations in early July, but they did not reveal their prices until after mid-July. A source from the producer had commented last week that they had started to offer to the market in the second half of July at $1505/ton for PP raffia on ex-works Port Said, cash basis. “We started to offer on dollar terms in order to compensate for our losses due to the devaluation of the Egyptian pound against the US dollar. Currency fluctuations make buyers hesitant to commit to cargoes,” he added. According to the source, August is signaling a downward trend.
In addition to paying for their cargoes in dollar terms, customers will have to clear and handle the cargoes they purchase from EPPC themselves and will pay around 3-4% clearance charges based on the price they pay to the producer.
In line with the producer’s late July comments, a converter reported receiving lower August raffia prices from EPPC at $1300/ton on an ex-works Port Said, cash basis. The converter commented, “EPPC elected to offer lower their prices in line with falling import prices. Meanwhile, local market levels are still unclear despite lower import announcements and persistently weak demand.”
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