Egyptian players receive initial import PP, PE prices for Dec
According to a converter, the Saudi producer’s PP raffia and injection offers are $70/ton lower when compared to the latest offers they received from them. “We were already expecting such drops in line with lower crude oil prices. Now, the rest of the Middle Eastern producers are expected to come with similar decreases,” he added.
Another converter commented, “We received decreases of $60/ton for PE and $70/ton for PP from the Saudi Arabian producer when compared to the latest offers we got from them. We were already expecting decreases given the weak state of the market and the consecutive drops in oil prices, which are pulling down all polymer markets. We believe that after such cuts, the Saudi producer will follow an adamant stance on their offer levels and that they will not be willing to offer further discounts. Meanwhile, we do not know about their allocations this month but we think they are likely to be at normal levels.”
An injection products converter remarked, “December prices were issued with decreases and these drops were already expected when considering the relentless decreases on oil prices. We are expecting these drops to be reflected onto the local market as well. However, this refection might take at least a week since distributors still have stocks at their warehouses. These noticeable decreases will harm distributors’ margins given the fact that their stocks were purchased at previously higher levels.”
Looking at the freshly reported levels for the Saudi Arabian producer’s December prices, they stand at $1500/ton for PP raffia and injection, $1550/ton for PP film, $1540-1550/ton for PP fibre, $1540/ton for LDPE film, $1510/ton for LLDPE film, $1530/ton for HDPE film and $1540/ton for HDPE injection on a CIF Alexandria/Suez, 90 days deferred payment basis.
These new prices indicate three digits decreases of between $110-150/ton when compared with the producer’s initial November levels.
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