More PP, PE suppliers lower June offers to Egypt

In Egypt, some Mid-Eastern PP and PE suppliers have lowered their initial offers due to lackluster demand during the month of Ramadan amid sufficient supply levels and volatile upstream costs. This followed the move of a Saudi major, who had to apply sizeable decreases for June as their prices were found unworkably high in the past few months.

Accordingly, a Middle Eastern producer revised its initially rolled over offers down by $30-40/ton for LDPE film, by $60-70/ton for LLDPE film and by $80/ton for HDPE film. In addition, a Saudi producer also applied declines of $60-100/ton on its homo PP and PE prices compared to its initial levels.

The suppliers’ offers are standing at $1280-1300/ton for LDPE film, at $1150-1200/ton for HDPE film, at $1190-1230/ton for LLDPE film, $1150/ton for HDPE b/m and at $1080/ton for homo PP raffia and inj., all on CIF Egypt, 90 days basis.

A converter said that the Saudi producer adjusted its initial prices down to the real market levels in order to attract buying interest amidst weak crude oil prices and poor demand.

“The prices are reasonable now while we believe that other suppliers should step back from their high offers too as their current price levels are not workable levels. Meanwhile, offers for locally-held cargoes also started to decrease given poor demand during Ramadan,” added the converter.

A source from a Middle-Eastern producer also commented, "We had to adjust our offers in accordance with the other Middle Eastern suppliers’ prices and slower demand throughout Ramadan.”

In addition, a trader who concluded some PP deals for a different Saudi origin with discounts of $50-60/ton compared to early month argued, “Players are delaying their purchases until the upcoming month as further declines of $20-40/ton are expected in July,”