Egypt’s PP, PE markets rise on tightness in September
Saudi major hikes Sept offers
A major Saudi Arabian producer hiked its PP offers by $60-150/ton from last August levels, while also lifting its PE offers by around $20-60/ton, depending on the grade. The producer had no availability for PPH film and the state of availability for other grades were to be “determined upon request” of buyers.
Competitive materials immediately sold out
In the meantime, some lower offers emerged. A Middle Eastern producer’s new PPH raffia and inj. offers were at a $110/ton discount to the Saudi major’s September offers at $1350/ton CIF Egypt. The producer’s new PE offers were within the current ranges.
However, players reported that these competitive offers were soon unavailable, with the producer being sold out almost immediately.
A trader, who reported new PPH inj. and raffia offers from a different Saudi supplier at $1480-1500/ton CIF Egypt, said: “Supplies from the Middle East are not at all comfortable. Competitive offers disappeared in a very short amount of time, due to tight allocations”.
Buying sentiment mixed among players
Although some buyers rushed to purchase volumes at relatively more competitive levels, the volatile projector of global feedstock and downstream markets kept some players at bay. The general market sentiment was reported to have been “slow”, with most buyers purchasing hand-to-mouth due to elevated levels in the market.
Local producers announce flat-to-higher levels
Meanwhile, local PE producers SIDPEC and ETHYDCO announced rollovers to increases as compared to their previous levels. Although a source from ETHYDCO reported having sufficient stocks for prompt delivery, the producer was reported to have run out of LLDPE film and HDPE pipe (100-natural) stocks for September.
SIDPEC resumed regular operations and deliveries to the market, following a month of absence. The producer’s 225,000 tons/year swing unit in Alexandria was reported to have restarted following maintenance in August.
EPP (Egyptian Propylene & Polypropylene), one of the two local PP producers in Egypt, unveiled their fresh September offers with increases of $75/ton over the latest August levels. “We have successfully purchased our first propylene for our own consumption that will enable us to maximize our capacity utilization and fulfil all requirements of our customers both locally and internationally,” a producer source said.
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