Middle Eastern producers started to pronounce new July sell ideas in Egypt’s PP and PE markets at the beginning of last week. Towards the end the week, actual offer levels that surfaced are lower when compared to the regional producers’ latest June offers, as per ChemOrbis.
New July sell ideas were announced with US$20-70/ton decreases for PP raffia and US$40-70/ton decreases for PP injection. Sell ideas for PP block copolymer and random copolymer saw US$20-70/ton and US$30-80/ton decreases, respectively. In the PE market, the same producer’s July sell ideas indicated US$80-130/ton decreases for HDPE film and blow moulding when compared to recent June offers. A source from the producer had noted that they first wanted to hear other regional producers’ offer levels before pronouncing actual prices while highlighting that July import prices in the Egyptian market are strongly anticipated to fall. Towards the end of this past week, buyers started reporting actual offers from the very same producer. According to buyers’ reports, the Middle Eastern producer’s July PP raffia offers are US$20-50/ton lower than their most recent June prices, while their new homo-PP injection offers indicate US$50-60/ton decreases compared to their latest June pricing. Meanwhile, their HDPE film offer indicates US$100/ton decreases when compared to their most recent June offers. Two different sack converters, receiving these offer levels from the producer, commented that the seller holds adequate stock levels to meet the market’s needs while adding that they expect to see more Middle Eastern producers approach the market with similar decreases.
Meanwhile, a different Middle Eastern producer announced July sell ideas in the PE market. Their new price ideas indicate US$110/ton decreases for HDPE film and US$120/ton drops for LLDPE film on CIF Alexandria, 90 days deferred payment basis. A trader offering on behalf of the producer reported having limited availability. Such lower sell ideas and consequently lower offer levels were no surprise neither in the PP nor PE markets as overall PP and PE demand has been globally slow and Saudi Arabian sources had already revealed lower July sell ideas to China prior to the nominations in Egypt. These bearish developments coupled with globally slow demand in other Mediterranean markets, including Italy and Turkey, and lower oil prices, despite their recent rebound during last week, were indicating a downward trend in July.