31 July 2013 17:24 [Source: ICIS news]
LONDON (ICIS)--While an Egyptian polypropylene (PP) buyer spoke last week of an improvement in the market following an aid package from the Gulf Cooperation Council (GCC) countries and the ousting of the former president, other polyethylene (PE) and PP market participants in Africa and the Middle East said on Wednesday there is still a wariness of doing business in the country.
A Middle East producer said: “We’re still wary of doing business with Egypt. These things don't change because they've got $4bn [€3bn].
"These guys are in trouble, you have to be cautious. You have to look at infrastructure. There are major concerns. The local currency is still devaluing.”
The source added much depends on the political inclination of the Egyptian person you speak to.
“I don’t see any business being done [in Egypt]," a distributor said. “Suppliers are still sceptical about doing business there. They [Egyptian producers] need to import feedstock.”
While the United Arab Emirates (UAE), Kuwait and Saudi Arabia recently pledged a $12bn aid package of cash, loans and fuel to Egypt, the source added that this money will most likely be used for essentials.
“Foreign exchange is still a problem, they’ll use the GCC money to import bread and fuel. If they don’t get bread, there’ll be a revolution.”
The source added that a consistent supply of gasoline is also essential.
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