Mid-Eastern producer reveals March PP, PE offers in Egypt

26. Feb. 2010

In Egypt, a major Middle Eastern producer revealed their March PP offers with increases of $20-30/ton. Accordingly, the producer's new PP raffia and injection offers now stand at $1340-1350/ton and PP film and fibre offers are at $1370/ton on CIF Alexandria, 90 days deferred payment basis. This increase announcement is in line with the expectations highlighted in Egypt's PP Polymer Digest report despite the generally pronounced rollover expectations in the market.

A trader, who gives these offers, does not feel sure if the producer will be able to sell at these new levels or not since the overall local supplies are comfortable and prices are offered at good levels. Locally held offers are between EGP8000-8200/ton ($1323-1356/ton without VAT) while the local producer OPC's offers are at EGP7435/ton on ex-Suez, cash not including VAT, $1353/ton.

Meanwhile, a buyer reported receiving March PE offers from the same producer. The LDPE film offers are at $1550/ton and LLDPE film offers are at $1420/ton on CIF Alexandria, 90 days deferred payment basis, representing a rollover from their February levels. Meanwhile, their HDPE film offers are at $1420/ton with the same terms, indicating a rollover from their initial February offers but a $20/ton increase compared to their most recent offer levels in February.
[Chemorbis]