Egypt’s import LL, HDPE hit highest since 2008, local markets reach all-time highs

According to ChemOrbis Price Index, import and local PE prices to Egypt have hit new highs this week along with the emergence of new April offers from mainstream sellers. The supply shock from the Middle East has caused a cumulative increase of nearly 80% in import prices since the outbreak of the war.

Players in Egypt reported monthly increases of $200/ton for import HDPE and LLDPE film prices while LDPE has seen a relatively smaller increase of $160-170/ton. These aggressive price hikes stemmed from surging costs, logistical disruptions, and ongoing geopolitical tensions.

HD, LL exceed pandemic highs; LDPE slightly behind pandemic peak

The weekly average of the latest import HDPE and LLDPE film prices suggests the highest levels since 2008, according to ChemOrbis Price Index, even surpassing the highs witnessed during the pandemic in 2021-2022.

LDPE, on the other hand, has hit its highest level since 2021, standing slightly below the pandemic peak.



Local PE markets see huge increases, hit all-time highs

Given the combination of inflated surcharges and higher landed costs, many players are turning to local sources despite the sharp rise in spot offers, according to market participants.

This week, the local market has seen increases of EGP8000-15,000/ton ($160-300/ton) for HDPE film, EGP4000-16,000/ton ($80-320/ton) for LLDPE film and EGP16,000-20,000/ton ($320-400) for LDPE film.

The cumulative increases have reached 50-60% depending on the product since the beginning of the war in the Middle East. This has pushed all indexes for local PE prices to all-time highs on EGP terms, according to ChemOrbis Price Index.

Despite the massive hikes, the total gain ratio stays below that of the import, with local markets offering a competitive advantage against imports given the lack of risks import cargoes carry.