July PP, PE prices see declines in Middle East, Africa
In Egypt, a Saudi Arabian major’s July offers indicated drops of nearly $10-30/ton from last June deals as was widely expected by players.
The same producer’s July prices in the United Arab Emirates, meanwhile, were steady for LLDPE c4 film and HDPE film but down by $40/ton for LDPE film and $20-50/ton for homo PP month over month. A trader in the country commented, “Supplies are sufficient for all grades whereas demand remains below average with players delaying their purchases given their slow end businesses. Meanwhile, players are expecting further discounts on deals. Sellers are open to negotiations in order to conclude more deals.”
Algeria received larger decreases from the Saudi Arabian major as its July PP and PE prices were down by $70-90/ton compared to early June levels. “The major’s new prices are still considered high as the overall market activity was calm during Ramadan and it is yet to revive so far this week. Therefore, we are not in a rush to secure cargoes for now," said a trader in the country. A PE, PP buyer pointed to the negative impact of volatile crude oil prices on the country’s economy as a reason for stagnant end markets.
In Kenya, a trader reported receiving $20-30/ton declines from several Middle Eastern PP and PE producers for July shipment. He remarked, “Supplies are ample and the upcoming August elections are slowing the activity further.” According to the trader, Middle Eastern producers are adjusting their offers down to conclude deals out of fears about new drops in upstream costs and ample supplies in Asia.
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