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Jordanian buyers: A Saudi producer issued discounts on deals

by ChemOrbis Editorial Team -
  • 13/10/2015 (14:52)
In Jordan, a converter reported that a major Saudi Arabian producer issued discounts on their HDPE film offers. “We made small HDPE purchases from the Saudi producer and from an Emirati producer, in line with our needs. Demand is not strong enough to support the price hikes and therefore, producers are open to negotiations. Plus, there are no availability issues felt,” he further added. The buyer purchased Saudi HDPE film at $1250-1260/ton on CIP, Jordan, 90 days basis. The deal level indicates $30/ton decreases from the producer’s initial offers. Meanwhile, the same buyer purchased Emirati HDPE film at more competitive levels at $1150/ton on CIF Aqaba, Jordan, 90 days basis.

Another converter in the country also confirmed receiving October HDPE film offers from the Saudi producer with discounts from initial levels at $1260/ton on CIP Amman, Jordan, 90 days basis. “Overall demand remains below the average rates and players are expecting considerable discounts when concluding deals. At the moment, we remain cautious about purchases,” he further added.

Players also reported new October LLDPE film offers from the Middle East. Previously, players had reported a major Saudi producer’s LLDPE film offers at $1320-1330/ton on CIF, 90 days basis. However, a different Saudi producer’s LLDPE film prices stand at more competitive levels of $1150/ton with the same terms.

A buyer who obtained these competitive prices commented, “The large gap between the two Saudi producers’ prices confuses us and makes us more reluctant to purchase. Plus, we are not in a rush to purchase given our comfortable stocks. However, there are some expectations regarding firmer oil prices in 2016 and therefore, we anticipate a stable to firm trend over the near term.”

According to ChemOrbis Plastic News, Qatar’s oil minister and the Organization of the Petroleum Exporting Countries’ (OPEC) president Mohammed bin Saleh al-Sada has reported that they expect a recovery in crude oil prices in 2016 amidst higher demand and stronger global economic growth.
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