July expectations surface in Mid-East, Africa for PP, PE
Trading activities in the Middle East and Egypt have already slowed down owing to the month of Ramadan and the upcoming Eid holidays while African markets have also been calm given compelling economic conditions.
In the Middle East, a household product manufacturer in Lebanon commented, “Although demand is slightly improving during Ramadan, it is still weak when compared to the last two years. However, supplies are ample and players are expecting the downward trend to continue in the medium term.”
A converter in Jordan said, “We received June PE offers with decreases from the previous month. However, we still find these levels high and prefer to wait before making any purchases as we expect prices to maintain its downtrend in July.”
In African markets, a manufacturer in Kenya, where the market was quiet in the face of the Ramadan lull as well as elections, noted, “Demand towards our end-product is thin and the overall market activity is slow. Therefore, we think July announcements will come with further decreases from June levels.”
In Egypt, expectations were mostly focused on weaker PP and PE offers for July, with the exception of HDPE film which is believed to be firm given supply issues. A PP, PE converter said, “ Despite poor demand, sellers are firm on their HDPE film offers considering the shutdown of Egypt’s SIDPEC, which is set to start at the beginning of July.”
To see further details about the most updated news of new capacities as well as shutdowns and restarts around the globe at a glance, please follow ChemOrbis PE Production news .
A trader also stated that they expect to see drops of around $20-30/ton in July PP and PE pricing in the midst of poor demand as well as cash flow problems in Egypt.
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