MOSCOW (MRC) -- In Egypt, the new local GPPS producer E-Styrenics, who has a 200,000 tons/year production capacity, divided evenly between GPPS and HIPS, started offering prime materials to their local market, according to Apic-online.
The producer, who started their commercial production in January this year, was offering off-spec materials to the market until recently. This past week, a competitive import Egyptian GPPS offer showed up in Italy.
Meanwhile, in Turkey, there are rumors regarding the Egyptian GPPS. Some players report expecting Egyptian cargoes by April and add that there are no offers present in the market at the moment while some claim to have received Egyptian offers since last month. Nonetheless, this week, an increasing number of players in Turkey started to report that they hear Egyptian cargoes at very competitive levels although some cannot be sure if these cargoes are given for prime or off-spec materials.
Players comment that should this new PS producer’s materials offer good quality for converters, they are very likely to take away some market share as Egyptian material is exempt from customs duties. Buyers expect to see more regular deliveries from the Egyptian producer for prime materials as competitive offer levels for these cargoes already showed up in Italy.
Meanwhile, looking at Egypt’s PS market, players complain about the weak market conditions amidst thin buying interest which is intensified further by the ongoing economic and political issues inside the country. Purchasing power has been hampered badly in Egypt given the country’s dwindling dollar reserves amidst the increasing dollar parity while Egyptian buyers continue to struggle when trying to open letters of credit at banks. On top of these issues, a fuel crisis and road problems have also sprung up, affecting deliveries as trucks are either stuck on the roads or in fuel queues.
As MRC wrote earlier, Egypt exported more than 11 thousand tons of homo PP to Turkey in the first month of 2013, which was a record high on a monthly basis for the country. Having been the fourth largest import PP supplier of Turkey throughout 2012, Egypt moved up to second place in the list of top PP suppliers in January, overtaking Greece and India, although it still lags well behind Saudi Arabia.
MRC