PP and PE markets turn softer in Egypt, Mid-East
Egypt’s import market witnesses decreases
Middle Eastern producers opted for rollovers to decreases after leaning towards a steady-to-firm pricing policy for the past three months. The lower offers were no surprise to the majority of the market players as earlier forecasts predicted reductions amid the persistently weak buying interest.
Some players also expect seeing further discounts in the weeks ahead due to the current supply-demand dynamics.
Local PE producers cut offers to encourage buying in Egypt
SIDPEC and ETHYDCO, Egypt’s local PE producers, each announced decreases compared to May in order to encourage some buying interest among the market players. SIDPEC’s latest offers saw decreases of EGP500-1500/ton while ETHYDCO cut its offers as much as EGP800/ton.
The latest declines were also driven by lower USD/EGP exchange rates. Suppliers reported that the record declines seen in the US dollar have kept buyers at sidelines as they expect even lower prices in the near term.
EPPC slashes PP offers for 1st time since January
Egypt’s local PP producer EPPC also cut its June offers to the domestic market for the first since January. The producer’s offers increased for three months in a row between February and April while May offers were stable.
Saudi producers apply stable to soft pricing on local market after 4 months
Players reported mostly rollovers and some decreases in fits and starts from Saudi producers in the local market. The local market steadily witnessed a firm pricing policy since January this year.
Emirati producer holds prices steady in local market
In the United Arab Emirates, a domestic producer’s latest offers for June were at more or less unchanged levels from last month. The local producer had been following a steady-to-firm since the beginning of this year.
A distributor noted the ongoing liquidity issues and slow end sales have kept buyers sidelined even after the Eid holiday.
Import prices steady-to-soft in UAE
Weaker demand was also reflected in a major Saudi producer’s offers to UAE. The producer’s PP and PE offers for June indicated rollovers to decreases ranging between $30/ton and $60/ton when compared to last month.
Saudi major announces rollovers in Jordan, cut prices in Lebanon
In Lebanon, the major Saudi producer’s new PP raffia and injection offers declined significantly by $120-130/ton and its PE offers saw decreases ranging between $10/ton to $50/ton when compared to its initial prices in May.
Lebanese PP and PE buyers remained cautious as they expect further prices cuts by next month amid weaker upstream costs.
In the mean time, players in Jordan received rollovers from the Saudi major while another Saudi producer’s new June offers stood competitive when compared to the major producer’s new offers.
Jordanian players also agreed that demand has failed to pick up after the holidays, pointing at cash flow issues and weak final product sales.
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