January trend takes shape in Egypt’s PP, PE markets
Saudi major starts 2021 with fresh hikes
A major Saudi supplier’s January offers started to emerge early last week, indicating increases of around $230/ton for PPH and $110/ton for certain PE grades. Although players suggested that prices could be subject to negotiations later in the month, this new price announcement caused a spark that ignited a series of increases in Egypt’s polyolefin markets.
Mid-Eastern PP prices sharply higher from Dec
A Middle Eastern producer’s PP offers were likewise higher on the month, with increases of $150-170/ton for PPH raffia and inj. grades. PPBC inj. and PPRC inj. offers saw a larger monthly gain, surging by $220-240/ton and $250-270/ton respectively. These changes brought the producer’s latest offers to $1280-1290/ton for PPH raffia and inj., $1380/ton for PPBC inj. and $1470/ton for PPRC inj., CIF Egypt, 90 days.
“Allocation is severely short,” a trader said, adding that this shortage was reflected in notably higher prices.
US LDPE and LLDPE C4 film largely unavailable
Tight allocations also played a role in a US supplier’s January pricing. New US HDPE film offers emerged at $1180-1190/ton ($1239-1250/ton with 5% customs duty) CIF Egypt while LDPE and LLDPE C4 film offers were largely unavailable.
Domestic PE producers opt for large gains
Both local PE producers announced new offers with increases over December. HDPE film and HDPE inj. offers were higher by EGP2400/ton ($153/ton) while HDPE b/m offers increased by EGP1900/ton ($121/ton) over December. LLDPE C4 film offers saw the largest monthly gain, increasing by around EGP2500/ton ($159/ton). SIDPEC’s new offers for January were similarly higher by around EGP2400/ton ($152/ton) over December.
A source from ETHYDCO said that their new prices were largely in line with new price announcements from Saudi suppliers while a source from SIDPEC reported wide market acceptance amid the prevailing tightness.
Local PP producer almost sold out for Jan
The two local PP producers also approached the market with three-digit increases over December. EPPC’s January offers were $250/ton higher for PPH raffia and fibre while PPH film offers were $195/ton higher over December. OPC’s prices indicated increases of around EGP2650-2800/ton ($167-178/ton) from December.
A source from the EPPC said that they would be offering limited allocations to the local market due to better netbacks in export markets. A source from OPC reported they were almost sold out thanks to increased number of price inquiries from buyers.
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