Import PP, PE offers for February revealed higher in Egypt

Several PP and PE players in Egypt reported receiving the new February offers from many Middle Eastern producers with increases in line with expectations amidst strong upstream costs and supply limitations from the region.

Early this week, a trader received the new February price lists from a Saudi major with increases of $30-40/ton for PE and $50/ton for PP compared with its January prices. The major’s new offers were reported at $1350-1360/ton for HDPE film and b/m, at $1350/ton for LLDPE c4 film and LDPE film, at $1360/ton for HDPE b/m, at $1200/ton for PP raffia and injection, at $1230/ton for film and fibre, all on CIF Egypt, 90 days.

Players find the major’s new prices quite high given the unsupportive demand and poor economic conditions while they also pointed out that lower levels can be achieved on deals as was the case in the previous months.

“The increases came in line with our expectations; however, the current price levels are very high, especially when our local currency continues to depreciate against the US dollar. Hence, we think that the market cannot absorb these levels," said a converter.

An Emirati producer also announced their new February prices to Egypt with increases of up to $70/ton for PP and $40/ton for PE from January while a Qatari and another Saudi supplier applied increases between $50-60/ton on their new PP and PE offers to Egypt.

Accordingly, the suppliers’ new PP and PE offers are standing at $1220/ton for LDPE film, at $1230-1260/ton for LLDPE c4 film, at $1150-1260/ton for HDPE film, at $1250-1260/ton for HDPE b/m, at $1100-1130/ton for PP raffia and injection, at $1120/ton for PPBC inj. andt at $1180/ton for PPRC inj with the same terms.

A trader said that they are trying to secure cargoes from the Emirati producer given their competitive offers whereas the producer’s allocations are a bit tight this month especially for raffia.

A different trader confirmed the tightness in the import market, claiming that allocations from the Qatari producer are also limited as the producer is having maintenance at their plant. “The overall demand is slow, but it is in balance with supply levels,” added the trader.