Demand for ELS during 2004-05 increased substantially due to competitive prices led by US Pima.
But later, a reduced crop output in the US, India, Central Asia and Egypt prompted a steep upward revision in prices.
The jacked up ELS of U.S. Pima was traded for 1.50 U.S. cents per pound CIF Asia, the Egyptian Giza 86 at 120 US cents per pound CIF Asia and Giza 70 reached 150 US cents per pound.
The hiked up prices made the buyers turn away triggering a fallback in prices.
The US Pima prices fell below 1.40 and a slide between 100 to 300 points on Egyptian offers.
The depressed ELS market affected Egyptian export, with sales totaling 1,314 tons for the week ending January 21, a significant reduction, compared to December.
marketing@alchempro.com
