Egypt’s local PP, PVC and PE producers under upward pressure
In the distribution market, locally held offer levels have been recording noticeable increases for the last couple of weeks since EGP exchange rates were further devalued in the black market amidst speculations that the Central Bank will devalue their official rates further. However, the Bank had denied these speculations at that time while they announced that they kept their interest rates stable on April 29.
Nevertheless, following the last two weeks’ increases in the local market, distributors’ offers moved above the local polymer producers’ offers.
In the PP market, locally held raffia prices gained EGP500-600/ton ($56-68/ton using official exchange rates) during last week while distributors’ prices were around $65-100/ton above the local producer OPC’s offers.
In the PVC market, overall distribution market levels recorded EGP400-1000/ton ($45-113/ton using official exchange rates) increases during this past week while the locally held offers were carrying around a $45-115/ton premium over EPC’s prices and a $35-105/ton premium over TCI Sanmar’s prices.
In the PE market, locally held HDPE film and blow moulding prices gained EGP200-800/ton ($23-90/ton using official exchange rates) hikes during last week. These prices stood $160-210/ton above SIDPEC’s HDPE film offers and $140-180/ton above SIDPEC’s blow moulding prices.
Despite the Central Bank’s decision to maintain their interest rates at the end of last week, higher prices in the distribution market coupled with higher emerging import Middle Eastern prices for May exert an upward pressure on the local producers’ levels.
A major Saudi Arabian producer issued their new homo-PP prices with $100/ton increases and PE prices with $40/ton increases when compared to their initial April levels. However, the increase amounts are larger at $120/ton for homo-PP and $60/ton for PE when comparing the producer’s new May levels with their latest April prices, for which they issued around $20/ton discounts amidst weak demand.
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