Egypt’s PE and PVC producers issue February prices
EPC elected to rollover their PVC k67-68 prices at EGP7000/ton ($922/ton) and their PVC k70 prices at EGP7150/ton ($942/ton) on an ex-Alexandria, cash not including VAT basis. A source from the company said, “We anticipate that demand will improve in the upcoming weeks as import offers are showing some signs of recovery. Plus, the increasing dollar parity has caused more players to turn to the local market and will help local demand to improve. We feel content about the buying interest we have seen for the past couple of weeks and we hope to see further improvement. At the moment, we are proceeding normally with our deliveries and hold good stock levels.”
Meanwhile, contrary to expectations based on the depreciating EGP against US dollar, SIDPEC elected to lower their prices. The producer had been anticipated to cut their February prices prior to the rapid decreases that the Egyptian pound recently recorded. As the value of the local currency declined, players had started to comment that the producer might opt to stick with their offer levels instead of lowering them.
However, SIDPEC issued EGP800/ton ($105/ton) decreases for HDPE film and blow moulding at EGP9400/ton ($1238/ton) and EGP9500/ton ($1251/ton), respectively, on ex-Alexandria, cash not including VAT basis. The producer issued EGP800-1000/ton ($105-132/ton) drops on their HDPE injection prices at EGP9300-10000/ton ($1225-1317/ton) with the same terms.
“We issued decreases for February, but we want to clarify our pricing policy. During January, many producers revised their prices downward in line with weak demand and they concluded deals at prices lower than their initial levels by mid-January. However, since we offer on a monthly basis, we did not make any adjustments on our prices. Therefore, our initial February cuts are primarily compensation for our untouched offer levels in January. We hold sufficient stock levels and we are running our plant at full capacity as both our production lines are operating without any problems. Our deliveries, meanwhile, are proceeding smoothly,” a source from the producer added.
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