Skip to content

Filter Options
Text :
Search Criteria :
Territory/Country :
Product Group/Product :
News Type :
My Favorites:

Egypt’s PP, PE prices see corrections as buyers resist firm offers

by Başak Ceylan -
  • 16/11/2021 (02:44)
In Egypt, offers from the Middle Eastern suppliers had been announced with increases that exceeded most players’ expectations. As the resistance towards these new levels grew, suppliers were forced to take a step back and November prices saw downward corrections by mid-month.

Initial offers emerge with large hikes

November took off with higher-than-expected price increases from a major Saudi Arabian producer. The producer’s initial PP offers were higher by $100-140/ton from October while PE offers increased in the range of $80-170/ton depending on the grade.

The other Middle Eastern suppliers followed the major producer’s lead, increasing their November offers in a likewise manner.

Resistance results in lower deal levels

However, these levels soon met with stiff resistance from buyers and downward corrections ensued. Accordingly, the major producer cut their PP offers by $60-120/ton and also decreased HDPE offers by $130/ton, but held LDPE film and LLDPE film offers stable as compared to initially announced levels.

Players started concluding deals with their Middle Eastern suppliers by the end of last week, with levels indicating drops as compared to the earlier offers. New deal levels for November were at $1690-1710/ton for PPH raffia and inj., $1750-1800/ton for PPBC inj., $1500-1550/ton for HDPE film, $1520-1570/ton for HDPE inj. and HDPE b/m, $1620-1650/ton for HDPE pipe, $1830-1870/ton for LDPE film, $1550-1600/ton for LLDPE C4 film, all on CIF Egypt, 90 days basis.

Supply-demand dynamics remain as key issue

Demand has been brittle in Egypt as consecutive price increases diminished the buying interest. Market players have been struggling to pass on increasing prices to their end-product prices and the ongoing problems regarding cash flows have posed an additional pressure on sell ideas. Reports suggesting an increase in supply and inventories also weighed on the sentiment, resulting in price corrections.

A similar scene was first seen in domestic markets, where sellers attempted to encourage buyers by decreasing their offers. However, market discussions have so far remained thin, with buyers adopting a cautious stance amid volatile pricing indicators.

December outlook still undecided

Although it is still too early to see whether downward corrections will extend into December, players are largely expecting prices to hover around their current levels in the near-term. The prevailing macroeconomic conditions and liquidity problems are unlikely to see a great improvement ahead but the state of supplies through the winter season is expected to be monitored closely.
Free Trial
Member Login