02 July 2013 11:24 [Source: ICIS news]
LONDON (ICIS)--Middle East producers of polyethylene and polypropylene for the African markets are nervous of conducting business in Egypt because of the political crisis there, they said on Tuesday.
“We’re scared,” a PP producer said. “Should we push volumes to Egypt?” The source added that there is no cash in the Egyptian bank.
A PE producer said: “We have concerns about the political situation in Egypt. We’re looking at the stability of the market, and the ability of buyers to pay.”
However, for producers willing to take the risk, the rewards can be high.
“[Business is] very good,” the PP producer said. “We sold [homopolymer raffia] at $1,600/tonne [CFR Egypt]. The customer needs to run his business, so he needs to pay more."
A lack of competition is also a factor in achieving relatively high prices.
“[We’re] Getting the best prices ever,” the PP producer added. “No one is willing to sell [in Egypt], so we get very good prices. There is demand from buyers, people need to consume. Local producers are not producing. They're worried, there is no local production. It’s very scary.”
Millions of Egyptians have taken part in nationwide protests since Sunday, calling for president Mohammed Morsi to step down.
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