Polymer Price Trends In North Africa (Egypt) For The Week

Polymer price trends in North Africa (Egypt) for the week

24-Jun-16

PE
PE monthly prices remained stable. Oil prices fell last week amid concerns about the market supply and demand balance as production in Canada started to grow and U.S. stockpiles dropped less than expected. Ethylene value in Asia continued to decrease, dropping by US$5/mt last week. Supply was sufficient, although deliveries from the Middle East were limited due to the start of Ramadan. Demand is expected to remain slow till the end of Ramadan. However, in July-August the market is likely to find a support from plant turnarounds in Asia and curbing output in China ahead of the G20 summit held in September. Next month, PE prices are likely to stay stable or decrease.

PP
PP monthly prices were stable. Oil prices fell last week amid concerns about the market supply and demand balance as production in Canada started to grow and U.S. stockpiles dropped less than expected. In Asia, naphtha value dropped by US$18/mt while propylene was relatively stable, falling just by US$1/mt. Supply remained sufficient. However, deliveries from the Middle East were limited due to the start of Ramadan. Demand is expected to remain slow till the end of Ramadan. Next month, PP prices are likely to stay stable or decrease.

PET
PET monthly prices were stable. Oil fell last week amid concerns about the market supply and demand balance as production in Canada started to grow and U.S. stockpiles dropped less than expected. Ethylene value in Asia continued to decrease, shrinking by $5/mt last week. MEG decreased by US$9/mt, PTA gained US$3/mt while PX fell by US$21/mt. Supply was sufficient while demand was flat. It is likely to improve as the summer high season is approaching. On the other hand, demand may remain slow during Ramadan. Next month, PET prices are likely to stay stable.

PVC
PVC monthly prices were stable. Oil fell last week amid concerns about the market supply and demand balance as production in Canada started to grow and U.S. stockpiles dropped less than expected. Ethylene value in Asia continued to decrease, shrinking by $5/mt last week. EDC rose by US$15/mt while VCM jumped by US$65/mt. Global market sentiment remains bearish as demand in large consuming countries like China and India is still quite weak. Market activity is expected to be slow till the end of Ramadan. Next month, PVC prices are likely to stay stable or decrease.

Demand North Africa (Egypt)
Economic growth in Algeria is expected to pick up to 3.4% in 2016 against 2.9% in 2015 and will remain steady thanks to the strength of the sectors of gas and hydrocarbons, the World Bank (WB) said in its report on global economic outlook. According to this international financial institution’s forecasts, the growth of the Algerian GDP will pick up in 2016 to record
a 3.4% progress against 2.9% in 2015. The WB slightly noted its growth forecasts for Algeria in 2015, estimating the GDP’s progress at 2.9% against a forecast of 2.8% anticipated last January. After anticipating a 3.9% growth for 2016 last January, the World Bank lowered this forecast to 3.4% but underlined that the growth will remain steady thanks to the gas projects coming online and the modest dynamism in the non hydrocarbon sector.

Source Courtesy: polymers.io in association with Allied Solutions Indis Pvt Ltd