Egypt's PE market stutters after bullish start, PP firmer in Feb

After a bullish start to February, import PE offers started seeing downward revisions. Although buyers’ resistance forced sellers to trim their offers down to January deal levels, tightening supplies for PP grades and rising costs kept the pricing firm in Egypt.

Initial offers up sharply from deal levels

Early last week, a major Saudi producer announced February with increases of $110-150/ton for HDPE grades, $220-230/ton for LDPE film, $50-60/ton for LLDPE C4 film, and $160-170/ton for PPH raffia and inj. as compared to deal levels in January.

Although the Saudi producer’s offers were unchanged from the initial January levels, players were quick to point out that these offers too were revised down as the month progressed. “The initial prices are misleading,” a trader said, adding that those levels were too elevated to work under the current market dynamics.

Downward revisions ensue amid resistance

As largely expected, the major producer revised down their initial offers, bringing PE prices close to the previously available levels in late January. On the other hand, the producer’s new PP offers were $120-140/ton higher from deal levels in January.

Accordingly, the latest offers were at $1430-1440/ton for LLDPE C4 film, $1600-1620/ton for LDPE film, $1400-1490/ton for HDPE inj. and b/m, and $1400-1420/ton for HDPE film, inj. and b/m; $1580-1600/ton for PPH raffia and inj., $1610-1630/ton for PPH fibre and film, $1650-1670/ton for PPBC inj. and $ 1730-1750/ton for PPRC inj., all on CIF Egypt, 90 days terms.

Seller cuts PE offers despite higher costs

Despite reporting tighter supplies, a different Middle Eastern producer announced $60/ton drops for HDPE grades and $20-30/ton decreases for LDPE and LLDPE C4 film prices. The producer’s new offers were at $1420-1430/ton for HDPE film, inj. and b/m, $1410-1420/ton for LLDPE C4 film, $1630/ton for LDPE film, and $1670-1680/ton for heavy-duty, shrink LDPE film, with the same terms.

Local PE producers announce rollovers to drops

Meanwhile, local PE producers announced rollovers to decreases for February. SIDPEC’s offers were rolled over, with the producer reporting comfortable stocks for all grades, while ETHYDCO’s HDPE b/m, HDPE pipe, HDPE inj. and LLDPE film offers decreased by EGP500-1000/ton ($32-64/ton) and HDPE film offers were stable from January.

PP pricing more bullish than PE

As evidenced by the Saudi major’s latest offers, PP pricing indicated a firmer trend in February, largely as a result of squeezed availability.

Another trader reported new offers for Saudi PPH raffia and inj. at $1510-1520/ton and PPH film and fibre offers at $1540-1550/ton CIF Egypt, stating that these levels were the lowest available in the market.

New offers from EPP, one of the two local PP producers in Egypt, also indicated a relatively firmer pricing trend for PP grades. The local producer’s February offers increased by $30-70/ton over the latest January levels. “Price increases were a reflection of feedstock and shipping cost burdens that the company absorbed during the previous month,” a company source said.

OPC raised PP raffia and fibre offers for February by EGP1,100-1,350/ton ($70-86/ton) from January, in line with firmer imports and higher upstream costs. A source from the producer reported better demand for fibre grades.