Another Mid-Eastern producer announces Nov PE, PP prices to SEA

A source from a Saudi Arabian producer reported that they announced their November PE, PP prices to Southeast Asia with increases of $10/ton for HDPE and LLDPE film and $20-30/ton for homo-PP.

The producer’s PE prices currently stand at $1140-1150/ton for HDPE film and at $1200/ton for LLDPE c4 film, all on a CIF SEA, cash basis.“For LLDPE, it is hard to conclude deals above $1200/ton since ethylene in Southeast Asia remains on a soft note. The softening trend in the ethylene market along with crude oil prices below $50/barrel will affect the market sentiment. Some customers switched to HDPE on the back of the big gap between HDPE and LLDPE,” the source said.

For homo-PP raffia, the producer now offers at $1030/ton with the same terms. The source commented, “BOPP usually carries a premium of $20/ton over raffia, but for now BOPP and raffia are at the same level and sales of raffia grades are better. Some Middle Eastern producers are selling their material at higher levels of $1050-1060/ton CIF, cash.”

The source also reported that the producer will have a maintenance shutdown at their cracker in November. The shutdown is slated to last for 21 days. Due to the cracker turnaround; the producer’s 900,000 tons/year PE plants will be shut while the PPBC line will also be affected.