14 June 2011 17:58 [Source: ICIS news]
LONDON (ICIS)--An Egyptian domestic linear low density polyethylene (LLDPE) producer has brought down offers by more than $100/tonne in a bid to attract buyers during the busy summer season, after announcing a rollover in polyethylene (PE) prices for June at the beginning of the month, it said on Tuesday.
Prices now stand at Egyptian pounds (£E) 9,900/tonne ($1,678/tonne) ex-works, including a 10% tax.
Offers were decreased in order to improve demand just before the country approaches the low season of Ramadan (the Muslim fasting season) which begins on 1 August.
“Traditionally the summer, tourist season [has seen] high demand [which will last] until Ramadan when it will go down,” said the producer.
This decrease comes two weeks after Middle East-based producers reduced their offers to Egypt.
Offers from Middle East producers currently stand at $1,450-1,470/tonne CFR (cost & freight) Egypt.
Difficulties with securing credit, resulting from the political turmoil in Egypt earlier in the year, had limited PE imports.
However, the announcement by Robert Zoellick, president of the World Bank, of a $4.5bn support package for Egypt, part of which would be earmarked for financing private businesses, has sparked renewed hope among those who export to the country.
"The move by the World Bank could facilitate better cash flows in and out of Egypt," said a Middle East-based producer who exports to Egypt.
($1=€0.69) ($1 =£E5.9)
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