Producers from Middle East disclose new November PP, PE prices to Egypt

01-Nov-11

Towards the end of last week, Middle Eastern producers started to announce new prices for November shipment PP and PE cargoes in Egypt, while the regional suppliers’ new offer levels were in line with the globally bearish trend as well as the market’s expectations, as per ChemOrbis. So far, two major Middle Eastern producers revealed new PP and PE prices with decreases from October offer levels, to a market that was expecting decreases, given the globally weak demand. Additionally, Middle Eastern producers had started to reveal three digit decreases to the other markets like China and Southeast Asia. Buyers have commented that the producers’ lower pricing policies are reasonable considering the stagnant market activity for both products, ahead of the approaching Eid holiday, from end of this week till the middle of next week. Meanwhile, some distributors commented that the done deals are likely to be concluded at even lower figures given the thin buying interest. “The approaching Eid holiday and then the lull that traditionally follows it might push sellers to offer additional discounts in return for firm bids or larger purchase amounts,” some remarked. Overall PP and PE demand has not been performing well in Egypt since converters are not feeling pleased with their end product businesses although some raffia bag and pipe manufacturers are enjoying better sales when compared to the injection converters. Buyers, who report slight improvements on their end product demand, continue to complain that it is still below normal levels when compared to the same period last year while highlighting the liquidity issues in the market. A plastic container manufacturer complained of slow demand that has led to operation of their plant at 10-15% of total capacity despite a high season, especially for some PE applications.