Will Egypt's PP, PE markets extend declines to June?
Triple-digit cuts for May PP prices
Early last week, a major Saudi supplier revised their offers down by $170-180/ton for PPH raffia and inj., $190-200/ton for PPH film and fibre, and $180-190/ton for PP copolymer grades as compared to the initial May levels. Another supplier followed suit, with $170-200/ton drops for PPH raffia and inj. over their initial May levels.
The supplier’s PPBC inj. and PPRC inj. offers were also down by $180-210/ton and $195-205/ton, respectively, from early May.
While the downward revisions were becoming increasingly common in the market, a different Middle Eastern supplier announced May prices for PPH raffia and inj. at $420/ton discount over last month.
“Downward adjustments were in line with expectations as the initial PP offers were found too high amid comfortable local stocks and weak end-product sales”, a trader commented.
PE prices revised down as expected
The mounting resistance from buyers and a continued weakness in activities also resulted in downward revisions for PE prices. The major Saudi producer –who first approached the market with rollovers - cut offers by $100/ton for LLDPE C4 film and HDPE grades, and by $100-150/ton for LDPE film as compared to the initial May levels.
“The adjustments did not come as a surprise as most players resisted the initial prices, holding out for some discounts,” a converter reported.
Meanwhile, new LLDPE and HDPE offers from a Middle Eastern producer were $50/ton lower over last month, while LDPE film prices witnessed a larger monthly drop of $100/ton.
Players see room for further declines
According to players, the recent adjustments failed to resuscitate demand while expectations for June leant towards a continuation of price cuts.
The sentiment after the Eid holiday has so far remained bearish, with comfortable supplies for most grades. “Considering the weak demand, it could take time for the stocks to be depleted. We think that prices still have some room to come down before reaching a floor,” a trader said.
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