Egypt’s PP, PE markets rise to 5-month high in October
Tightness brings larger-than-expected hikes
The upward trend for October was set by a major Saudi producer, who announced hefty price hikes. Although increases were expected due to an ongoing tightness in availability and a bullish global trend, the size of increases was beyond players’ expectations.
The major producer’s new LLDPE C4 film and LDPE film offers surged by $230-240/ton over last month while HDPE film and HDPE inj. offers increased by $140/ton. The latest PPH raffia and inj. offers were also higher by $240/ton while PPH film and fibre offers jumped by $200/ton. PPBC and PPRC inj. prices indicated increases of around $170-180/ton over September.
Most suppliers nearly sold out for October
New offers from two different Middle Eastern producers also echoed the pricing announced by the major Saudi producer. Accordingly, one Middle Eastern producer’s October PE offers rose by $150-200/ton over last month, bringing the ranges to $1570/ton for HDPE film, $1550-1560/ton for HDPE b/m., $1570-1580/ton for HDPE inj., $1510/ton for LDPE film and $1760-1780/ton for LLDPE C4 film, all on CIF Egypt, 90 days basis.
"Most regional suppliers have limited availability. The persisting shipment crisis also supports the current levels," a trader said, adding that the producer was almost sold out for October.
Meanwhile, the other Middle Eastern producer’s PP offers jumped by $140-180/ton to be reported at $1600/ton for PPH raffia and inj. and $1650-1670/ton for PPBC inj., with the same terms.
“After having announced those prices, the producer said that they may not be able to deliver due to port congestion and container shortages,” the trader said and added: “The market is likely to continue to suffer from shortage this month too and this may continue supporting the firming path for local prices.”
Local producers’ offers echo recent import increases
The distribution market tracked the gains in the import prices. The domestic producers also opted for price increases in October.
OPC, one of the two local PP producers of Egypt, announced increases of EGP200-263/ton ($13-17/ton) over September, while EPP increased their October offers by $100/ton from last month.
ETHYDCO and SIDPEC –domestic PE producers- announced rollovers to increases over the latest September levels.
All four domestic producers cited the ongoing tightness in supplies and the upward trend in global markets.
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