Egypt’s PP and PE markets scramble to find clear direction
Saudi major hikes Feb PP, PE offers by $30/ton
A Saudi major hiked PP and PE offers by $30/ton when compared to its deal levels in January, despite buyers assuming a steady-to-soft outlook for February. The producer cited firmer energy costs and limited allocations for February as a justification for higher prices.
Offers from other Mid-East producers show rollovers to decreases
The rest of the Middle Eastern producers preferred not to follow the Saudi major’s lead and the offers largely ranged from rollovers to decreases. A Saudi producer lowered its offers by $55-80/ton for PE and $55-65/ton for PP grades. Another Saudi producer announced mostly steady offers compared to last month, shaping the low end of the price range for PP while an Emirati producer’s new PP film and injection offers formed the high end of the range.
Buyers expect to wrap up deals with discounts
Despite the higher pricing from the Saudi producer, buyers point out that the overall weakness in demand may exert downward pressure on prices and most expect to see lower done deals, as was the case back in January.
Competitive US PE offers stand out in import market
Egypt’s import PE markets have also had its share of competitive US LDPE film cargoes as one US supplier offered considerably lower prices compared to Middle Eastern suppliers.
Local PE producers continue cutting offers
Egypt’s local PE producers, SIDPEC and ETHYDCO, have both announced their new PE offers with decreases ranging between EGP200/ton and EGP1000/ton ($11-57/ton) from last month. This marked the fourth consecutive month of price drops from SIDPEC. ETHYDCO has also been following a steady-to-soft pricing policy since September last year.
Buying activities cautiously improve
Some producer sources reported that buying activities started to gain some pace as buyers began looking to stock up inventories. They are questioning whether firm energy and monomer markets as well as limited supply for some grades will help prices bottom out.
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