Domestic PP, PE, PVC offers increased in India, PVC roll over in Egypt

18-Jan-10

distributor in India reported that domestic producers lifted their offers for a number of polymer products to the local market this week. According to the distributor, domestic offers were announced with increases of US$44/ton for HDPE, LLDPE, LDPE and PVC while domestic PP offers were announced with an increase of US$88/ton from the previous week, as per Chemorbis. Although buyers report have not been pleased with these price hikes, the distributor reported that most converters have had no choice but to accept these price hikes as they had not built up much stock before the New Year holidays and cannot afford to delay their purchases any further. A source from Egypt’s local PVC producer, EPC, reported that they decided to maintain their offer levels for the second time in a row at EGP5450/ton (US$1003/ton) for PVC k67-68 on ex-Alexandria, cash not including VAT basis. Poor demand situation in the local market amidst the traditionally slow season in January has contributed to the pricing policy. Despite the higher import prices, a watch on local market conditions is a priority. These higher priced import cargoes will take some time to reach the Egyptian market, while the domestic offer levels are currently at around the same levels as the previously purchased lower cost cargoes offered in the distribution market.