Initial January PP, PE offers revealed in Mid-East, Africa
A Saudi major lifted its local PP prices after issuing rollovers in the past two months while keeping PE prices mostly unchanged for another month, except for the HDPE pipe (100) black grade that indicates increases of SAR188/ton ($50/ton). The Saudi major issued increases of SAR75 ($20/ton) for PP raffia and inj. compared to its December levels.
Following suit, a different Saudi producer also revealed its January offers on a stable to slightly firmer note.
A distributor reported that they were not surprised by the increases as January expectations were already firm on the back of the new VAT implementation. The source added, “Players are waiting to receive offers from other suppliers and see the impact of the 5% VAT. Therefore, the market response is limited. Local sellers are raising offers in an attempt to increase their margins; however, buyers are resisting January hikes.”
A major Saudi producer’s January announcements to Egypt and Jordan defied its pricing policy in China, where the producer applied decreases of $20-50/ton for PE and $20-30/ton for PP.
In Egypt, a source reported receiving import PP and PE offers from a Saudi major with $30/ton increases for most grades. The producer raised its HDPE film and homo PP raffia and inj. offers by $30-50/ton while applying $20/ton increases on its LDPE film offers.
According to the source, higher upstream costs encouraged sellers to apply hikes. He added, “However, we prefer to wait for other Middle Eastern suppliers’ announcements. Demand is still muted as players are yet to return to the market following year-end holidays.”
In Jordan, a converter reported receiving January offers from the Saudi major with increases of $30/ton for homo PP raffia and inj., $10/ton for LLDPE c4 film and $40/ton for HDPE film. The buyer noted, “New offers came in line with our expectations whereas end demand remains discouraging. Therefore, buyers prefer to remain cautious before engaging in fresh purchases.”
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