Downtrend continues into July in Mid-Eastern PP, PE markets
Saudi markets see visible drops for July
In Saudi Arabia, a major local producer announced decreases ranging between SAR150/ton ($40/ton) to SAR562/ton ($150/ton) for PE grades while PPH offers declined by SAR375/ton ($100/ton) as compared to June.
This was the third consecutive month that the producer’s PP offers declined while it marked the second monthly decline for PE grades.
The major producer’s price announcement was largely in line with expectations. Players expect the other suppliers to follow a strategy similar to the major producer, who usually sets the trend and the mood in the market.
Import prices roll over or decrease in UAE
In the United Arab Emirates, new offers in the domestic market were lower by around $30-50/ton for LLDPE C4 film, $130/ton for HDPE inj., and $300-330/ton for LDPE film. Local PPH raffia and inj. offers were also lower by $100/ton from last month.
Meanwhile, a major Saudi supplier’s new PPH raffia and inj., HDPE film and LLDPE C4 film offers rolled over from June. The major producer’s LDPE film offers, meanwhile, were lower by around $90-100/ton over last month.
A trader based in Dubai reported weaker-than-average demand and an uncertain supply outlook for the UAE market. “The local producer has no HDPE film to offer. We will see the exact state of their supplies in the upcoming days. Lower deals are expected, considering the demand, but supply constraints may hamper the negotiations,” the trader said.
East Med markets down for 3rd month
In the East Mediterranean region, polyolefin markets of Jordan and Lebanon extended drops into a third consecutive month as the comfortable availability and weak activities left suppliers with only a few options.
In Jordan, a major Saudi supplier’s new offers for PPH raffia and inj. were lower by around $250/ton from June at $1420/ton CIF Aqapa. The major producer’s LDPE film prices slumped by around $220/ton to $1560/ton while HDPE film and LLDPE film offers were both lower by around $90-110/ton at $1350/ton, with the same terms.
HDPE film and LLDPE C4 film offers from a different supplier were also reported at $1340/ton and $1320/ton, respectively, CIF Aqaba.
"Supplies are available and deals can be concluded at discounts," a trader based in Amman said, adding that activities were calm as players were largely focusing on basic needs ahead of the Eid al-Adha holidays.
In Lebanon, the major Saudi producer’s levels were visibly lower from the previously reported levels in June at $1430-1460/ton for PPH raffia and inj., $1350/ton for LLDPE C4 film and HDPE film, and $1550-1560/ton for LDPE film, CIF Beirut.
"The previous levels were found too high to work, so levels retreated further. Players are waiting to hear more offers before engaging in negotiations. Demand and activities, meanwhile, are slower than usual,” a trader based in Fanar reported.
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