Aug PE offers postponed until after holiday, expectations vary in Turkey
Market may see new hike attempts from the Middle East
Although the market lacked new price indications given the holiday mood, PE players think that Middle Eastern offers may emerge with modest hikes once the holiday ends. This view is based on a Saudi Arabian major’s higher announcements to its own market as well as export destinations including China and Egypt.
Yet, the workability of any additional price gains is under discussion with tepid demand for certain PE grades on one hand and higher expected August ethylene contracts in Europe on the other.
Outlook for LDPE appears firmer than other products
Players opined, “We do not believe that the market has further room to move up except for LDPE as availability has not eased much for this product. HDPE film may be hold close to July levels in case post-holiday demand supports, whereas LLDPE is likely to remain under the pressure of increased supply and thin buying interest.”
According to traders, a higher outcome of next ethylene settlement in Europe may provide support for sellers to some extent. “Sellers may remain firm on their offers only if they are able to sell to China. Otherwise, we may even see some discounts from initial August offers,” noted a converter, who is covered for the time being.
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