August expectancies surface in Egypt
A trader, offering PP and PE, commented, “Buying interest was extremely slow after the holiday. Most players did not resume their trading activities. Many, expecting further decreases in August, postponed their purchases.”
Apart from the holiday lull and further decrease expectations, the Egyptian pound has been losing further ground against the US dollar and this situation was another factor that caused players to refrain from import purchases.
A converter confirmed the slow return of the players to the market and noted, “Done deals, if any are made, are achievable at the low ends.”
According to a trader operating in Cairo, offer levels mostly tracked a stable note during this past week as many players elected not to resume their operations given the fact that the Ramadan holiday was followed up by another holiday. “Given the sluggish demand, we anticipate prices will lose ground both in the local and import markets. Plus, costs are retreating and this puts downward pressure on offer levels along with the thin buying interest,” he cited. “One of the effects of the weak demand is that we started to see more prices in the market,” he further added.
A different trader, offering both in the PP and PE markets, complained, “We barely received any inquiries after the holidays. This week, players are expected to return to their desks but even if there are more players in the market this week, we do not expect any great changes, because, August prices from the Middle Eastern producers are expected to be announced with decreases. Therefore, prior to the new announcements, no movements are anticipated in the market.”
A film product converter also remarked that players refrain from making fresh purchases, especially in the import market, before the lower expected August levels start to be announced as of this week.
Whilst the market is waiting for the new Middle Eastern announcements, a trader started to offer initial August LDPE film offers from South Europe with €50/ton decreases when compared with their latest July offers. This new South European LDPE film price remains toward the low end of the overall Middle Eastern LDPE film offer range for July, after converting it to dollar terms.
“Overall demand is slow and players mostly wait for the new August prices from the Middle Eastern producers. In general, expectancies centre on decreases for the next month. Like converters, we, too, wait to hear the new Middle Eastern prices for August in order to be able to judge the market response for our South European cargoes,” further added the trader.
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