January offers for South European LDPE film into Egypt higher

05-Jan-10

January offers by a trader for South European LDPE film into Egypt are being heard at US$1450-1470/ton CIF Alexandria as per Chemorbis. This is a much higher offer as compared with the same material that was offered for the same port last month at US$1350-1380/ton, 90 days deferred payment basis for December. The new price target indicates a US$90-100/ton increase over their most recent offer levels, triggered by plans by the supplier to raise offer levels by ninety dollars for the next month as well as the €30/ton increase in the ethylene contract in the region for their higher targets, despite the lower dollar/euro parity. The trader however, acknowledges that it will be a struggle to conclude deals at these higher levels since Middle Eastern LDPE offers, which recorded an increase of US$40-70/ton for January, stand at US$1360/ton on CIF Alexandria, 90 days deferred payment basis. However, the seller’s price appears to be in line with the high end of the European offers in Turkey, which are reported at €970-1000/ton, US$1392-1475/ton.