Major Saudi producer issues May PP, PE prices to Egypt
However, the increase amount is larger at $120/ton for homo-PP, $100/ton for PP copolymer and $60/ton for PE when comparing the producer’s new May levels with their latest April prices.
Towards the end of April, given weak import demand in Egypt and more competitive prices from other regional producers, the producer had conceded to $20/ton discounts for their regular customers.
The producer’s May announcements stand at $1300/ton for LDPE, LLDPE c4 and HDPE film, at $1330/ton for HDPE blow moulding and at $1350/ton for HDPE injection on a CIF Suez, 90 days deferred payment basis. For PP, the producer offers raffia and injection at $1170/ton, film and fibre at $1200/ton, PPBC injection at $1240/ton, PPRC injection at $1330/ton and PPRC (Type 3) pipe at $1410/ton with the same terms.
A distributor who received these new levels commented, “These import market increases were already expected while the new May hikes are likely to pull up local market levels further despite ongoing exchange rate issues. For now, we are trying to stand firm on our local offer levels as we expect further devaluation of the pound and further increases in the local market due to currency adjustments. However, the market panorama is still foggy.”
Meanwhile, a converter stated, “New May increases were not a surprise for us. However, before evaluating these new levels, we first want to hear other regional producers’ offers.”
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