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Egypt's local HDPE and PVC producers to perform maintenance in July

The local HDPE producer SIDPEC is planning a maintenance shutdown in the second half of July while their maintenance will take about two- three weeks.  In order to ease the supply concerns in the market, where high MI HDPE injection availability has been tight for some time, a source from the producer had reported that they will be able to meet the market's needs for HDPE film and blow moulding until the beginning of August.

However, SIDPEC has not been able to produce high MI HDPE injection as they faced a problem when shifting their production from low MI grade to high MI. The producer had been trying to solve the problem during mid-June due to the tightness. Despite SIDPEC's hopes to be able to resume their high MI HDPE injection production before their maintenance starts, a  couple of traders started reporting that the producer is now facing issues on their low MI HDPE injection production as well. They highlight that SIDPEC has only been delivering limited quantities of low MI grade to the market following their most recent price cut.

Prior to their shutdown, they revised down their low MI HDPE injection prices by EGP600/ton ($105/ton) to EGP6500/ton ($1144/ton) on ex-Alexandria, cash not inc VAT basis, as buyers were complaining about their prices standing above the distribution market level. However, due to the ongoing production problems regarding their high MI HDPE injection, they left their prices unchanged at EGP7200/ton ($1267/ton) on ex-Alexandria, cash not inc VAT basis.

In the PVC market, the local producer EPC is also planning a maintenance starting at the same time with SIDPEC's. The producer's maintenance will last between the 15th and 30th of July. A source from the company highlighted the fact that they are obtaining ethylene from SIDPEC and therefore, they decided to halt their operations at the same time with their supplier. EPC feels confident that their sales are not to going to be affected by the shutdown.

The local PVC producer had initially issued EGP250/ton ($44/ton) decreases for June while they lowered their prices even further by EGP300/ton ($52/ton), bringing their total decrease amount to EGP550/ton ($96/ton)  for the month.

Information from chemorbis.com

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