Egypt’s PP market hits the lowest levels since 2009
According to ChemOrbis Price Wizard, Egypt’s PP raffia market hit its lowest levels seen since 2009 both for import and local prices.
This past week, distributors’ overall raffia prices saw additional decreases of EGP100-500/ton ($13-64/ton). Within the range, Egyptian cargoes tracked a stable to EGP150/ton ($19/ton) softer trend while locally held Middle Eastern cargoes were stable to EGP500/ton ($64/ton) down.
In the import market, Middle Eastern producers approached Egypt with up to three digit decreases on their December prices but within the month, offer levels saw additional decreases and prices above the $1000/ton threshold were not found workable.
As reported on www.ChemOrbis.com, demand was almost muted as most converters, not feeling content with their end product demand, elected to enter 2016 with no stocks while they were mostly busy with financial book closures as the year drew near to its end. However, sellers were eager to de-stock before the year end and due to their cash flow needs.
Contrary to the PE market, players report that overall PP supplies have been ample for a while and this was another factor as to why buyers were in no rush to make fresh purchases. A trader operating in Cairo reported, “The market trend is bearish as the year end approaches. Prices are falling amidst thin buying interest and comfortable supplies. Ongoing cash flow issues keep pushing sellers to concede to lower levels in order to be able conclude sales.”
To track weekly developments in Egypt’s PP market, please see Egypt Weekly PP Analysis (For members only)
A film products converter commented, “Weak demand weighs down on prices and we prefer to meet our immediate needs mostly from the local market ahead of the January announcements, for which we anticipate further decreases.”
A distributor also noted, “Buyers are waiting to hear new January announcements while we anticipate the Middle Eastern producers will initially roll over their prices as an attempt to prevent larger decreases.”