Egyptian PP players hesitant after recent cuts
A Middle Eastern producer, who initially cut their November prices by $30/ton from their late October levels, has issued further cuts of $80/ton on their PP prices. Meanwhile, a major Saudi Arabian producer, who lowered their November prices by $20/ton from October, revised their prices down again by $80/ton for raffia and by $70-90/ton for fibre. However, some players continue to highlight that the revised prices are not widely offered and some buyers continue to receive the initial November levels from the Saudi producer.
The new revised Middle Eastern homo-PP raffia range stands at $1460-1650/ton on CIF Egypt, 90 days deferred payment basis.
Many buyers lack confidence regarding the future trend of the market as they think further decreases are possible amidst weak demand and lower upstream costs. Plus, crude oil prices on the NYMEX have reached a three-year low level, sinking below the $80/bbl threshold.
Meanwhile, in the local market, some distributors are reluctant to lower their prices, pointing to their previously purchased cargoes at higher costs, while others are opting to cut their prices in line with lower import prices and stock pressure that gets heavier as the end of the year approaches. Given this situation, some distributors were away from the market this week, preferring to observe developments before resuming their activities.
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