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Egypt’s import PP, PE markets flat but domestic prices turn upwards in Nov

by Başak Ceylan - bceylan@chemorbis.com
  • 16/11/2022 (09:51)
Following a turbulent October that was marked by a massive drop in local currency’s value, PP and PE offers from import suppliers were announced at more or less unchanged levels in November. However, local markets rose considerably over last month, reacting to new exchange rate regime and tightening supplies.

EGP plunges to record low against USD

On October 27, Egyptian pound plunged by around 14.5% to a record low against the US dollar as authorities announced a commitment to a "durably flexible exchange rate regime” in conjunction with a $3 billion International Monetary Fund (IMF) agreement. The pound was trading at 24.46 per dollar at the time of writing.

Saudi major keeps pricing flat, other sellers follow suit

Import markets, which have long been marred by a shortage of dollar, remained largely subdued in terms of trading. New offers that suggested rollovers from October failed to spur interest among buyers in November.

Offers from a major Saudi producer were unchanged from last month’s levels at $1140-1160/ton for LLDPE C4 film, $1300-1330/ton for LDPE film, $1150-1160/ton for HDPE film, $1170-1180/ton for HDPE b/m and inj., $1050-1060/ton for PPH raffia and inj., $1090-110/ton for PPH film and fibre, $1190-1220/ton for PPBC inj. and $1270-1320/ton for PPRC inj., all CIF, 90 days deferred payment.

PE offers from another Middle Eastern producer were stable at $1130-1150/ton for LLDPE C4 film, $1330-1350/ton for LDPE film, and $1130-1150/ton for HDPE b/m and inj., with the same terms.

PP offers for irregular Chinese origin and regular Middle Eastern origin were likewise flat on the month, assessed at a combined range of $1000-1060/ton for PPH raffia and inj., $1050-1090/ton for PPH film and fibre, $1190-1200/ton for PPBC inj. and $1260-1290/ton for PPRC inj., CIF, 90 days deferred payment.

Local markets up but demand remains challenged

On the other hand, domestic PE and PP markets have increased considerably as compared to a month earlier level, pressured by tightening supplies and sliding pound. According to ChemOrbis Price Index, local LDPE film, HDPE film and LLDPE C4 film prices traded in Egyptian pound have increased by an average of 11% while local PPH raffia, injection and PP block copolymer prices have risen by nearly 15% on average on month.

However, slower end-product sales and chronic cash flow problems continue to weigh on activities in the local market this month.

Local producers largely increase prices for Nov

As for local producers, both ETHYDCO and SIDPEC announced a monthly increase of EGP3,500/ton for all PE grades while OPC –one of the two local PP producers of Egypt– increased their raffia and fibre offers by EGP3326-3509/ton/ton as compared to October.

EPP (Egyptian Propylene & Polypropylene), who is scheduled to start a month-long maintenance in December, rolled over their November prices while also announcing quota in EGP to support the local industry amidst the current economic challenges the country has been facing.
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