Egypt’s local PP, PE markets stand firm

Egypt celebrated its first anniversary of the Revolution on January 25th, as per ChemOrbis. Prior to that date players had been nervous about potential problems arising from the celebrations and polymer demand was affected while players waited and watched. Last week passed relatively peacefully, bringing a sigh of relief to nervous market watchers and relieving some of the pressure on the demand side. Demand is still considered to be slow due to general economic malaise and the slow season during January. Nevertheless PP and PE prices in the local market are firm and prices of some of the grades moved higher last week. Price increases were most noticeable on PP film and HDPE film due to reduced local supplies. A distributor commented, “PP film supply is dwindling and for this reason we raised our prices significantly for this grade compared to the week before. In fact, many of the PE products are also seeing dwindling supplies including LDPE, LLDPE, HDPE film and injection because people had been hesitant to buy material before the Revolution celebrations. Most buyers are now enquiring about offers.” A film products maker concurred saying, “HDPE film and PP film supply is limited this week in the distribution market. HDPE is limited because the local producer is not delivering material, but PP film is limited because sellers want to push the market higher and have withdrawn their offers.” For his end product demand he commented, “Our business is very slow, but it is traditionally the slow season during January.” A couple of other film makers said they didn’t have problems to find material but one thinks supply is just balanced with demand and the other noted that he buys in very small quantities, as per ChemOrbis. A packaging products maker also noted that Egyptian HDPE film supply is limited, although he feels LDPE and LLDPE supplies are sufficient for the demand. He commented, “Despite the fact that there is sufficient LDPE and LLDPE supplies, prices are firm. For PP film we had to purchase at a much higher level this week.” He added that his end product demand is normal. A plastic bags manufacturer agreed, “HDPE supply is limited in the local market. Traders have no stock of either Egyptian or Sabic’s film grade. We can’t even get a reply to our enquiries from the country’s largest trader.” He also said that end demand is better this month compared to December. A distributor said, “Egyptian HDPE film is extremely tight. There is an improvement in HDPE blow moulding supply but prices remain firm. PP raffia prices are mainly stable and demand picked up.” He was expecting demand to pick up this coming week since fears about the celebrations on January 25th have passed and buyers will need to return to the market. A different distributor attributed the improved demand last week to the fact that buyers were expecting to see price increases on new import offers. He also said that he was offering HDPE blow moulding at a higher level even though supply improved because demand is good from buyers who need to replenish their stocks. He expects local prices to continue firming because of dwindling supplies, better demand and the increasing price trend seen in other regions. PP raffia prices contrary to film grade had been steady last week but on the last working day of the week a raffia sack producer reported that most sellers had withdrawn their offers because they were waiting for the new February import offers which were expected to come much higher.