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Egypt’s PP, PE markets continue to slide in January

by Başak Ceylan - bceylan@chemorbis.com
  • 18/01/2022 (09:58)
Polyolefins markets of Egypt extended drops into new year as resistance among buyers mounted, increasing the pressure on sellers’ pricing strategies. The mounting pressure was evidenced by downward revisions to offers announced by a major Saudi producer.

Saudi major’s initial offers fail to meet expectations

The major producer’s initial January offers stood at $1580-1600/ton for HDPE film, injection and LLDPE C4 film, $1790-1800/ton for LDPE film, $1690-1700/ton for PP raffia and injection, $1740-1750/ton for PP fibre and film, $1750-1760/ton for PPBC inj. and $1840-1850/ton for PPRC inj., all CIF Alexandria, 90 days deferred payment.

Although these levels were lower from the levels announced in early December, they were notably higher as compared to revised levels that most players concluded their deals towards the end of the year. With those levels failing to meet expectations, buyers took to the sidelines, waiting for further discounts from the producer.

Offers revised by mid-January amid muted demand

The wait was not a long one. The major producer withdrew the initial January offers and announced three-digit decreases for almost each grade. The current levels stand at $1400-1490/ton for HDPE film, $1430-1450/ton for LLDPE film, $1600-1680/ton for LDPE film, $1400-1490/ton for HDPE inj. and b/m, $1400-1480/ton for PPH raffia and inj., and at $1480-1600/ton for PPH film and fibre, all on CIF Egypt, 90 days terms.

More producers announce monthly drops

A different producer announced $110-120/ton drops for HDPE grades while also reducing their LDPE film and LLDPE C4 film offers by $150-190/ton as compared to December levels. The producer’s new offers were reported at $1480-1490/ton for HDPE film, inj. and b/m, $1440-1450/ton for LLDPE film, and $1650-1660/ton for LDPE film, with the same terms.

Import PP deals close at lower levels

During the first week of January, players reported deals for irregular Chinese-origin PPH raffia and inj. at $1380-1400/ton CIF (including $1449-1470/ton 5% customs duties) while deal levels for non-dutiable origins were at $1480-1500/ton for PPH raffia and inj. on CIF, 90 days deferred payment basis.

Moving on to the latter half of the month, PPH raffia and inj. prices lost further ground and deals were reported within a range of $1400-1450/ton, with the same terms.

Eyes on global markets to gauge Feb trend

The underlying weakness in buying is expected to play a key role over the near-term, keeping offers around the current levels until the end of the month. However, signs of shifting dynamics in certain global markets are expected to be monitored closely to see what pricing policies the Middle Eastern suppliers will adopt next month.
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