LATEST NEWS: Saudi major announces Aug PE, PP offers to China
by ChemOrbis Editorial Team - content@chemorbis.com
An agent of a major Saudi Arabian producer reported that the supplier announced August PE and PP offers to China with slight increases from July. Only for HDPE grades, the major skipped offers amid supply issues, meanwhile.
The producer lifted its new offers by $10/ton for homo-PP raffia, $30/ton for LDPE film, and $20/ton for LLDPE film when compared to last month. Accordingly, the latest levels are standing at $960/ton for LDPE film, $940-950/ton for LLDPE film, and $850/ton for raffia, all on CIF China, cash basis.
The agent commented, “Polyolefin markets in China are trending upward due to higher costs and Dalian futures prices. However, there is still a lack of support from end-user demand. Our customers have been facing slow orders since April and the situation seems to have worsened throughout this month. Export orders are also affected by the tension between the US and China. Many downstream businesses have shifted or opened new plants in Vietnam or Myanmar to avoid potential sanctions by the US.”
The agent underlined that there are no offers for HDPE grades as the major has no allocation due to a turnaround. “The allocation for HDPE will only return to normal from September onwards,” he noted.
As for the market outlook, he said, “Despite some macroeconomic policies announced by the Chinese government, we prefer to remain cautious about the outlook.”
The producer lifted its new offers by $10/ton for homo-PP raffia, $30/ton for LDPE film, and $20/ton for LLDPE film when compared to last month. Accordingly, the latest levels are standing at $960/ton for LDPE film, $940-950/ton for LLDPE film, and $850/ton for raffia, all on CIF China, cash basis.
The agent commented, “Polyolefin markets in China are trending upward due to higher costs and Dalian futures prices. However, there is still a lack of support from end-user demand. Our customers have been facing slow orders since April and the situation seems to have worsened throughout this month. Export orders are also affected by the tension between the US and China. Many downstream businesses have shifted or opened new plants in Vietnam or Myanmar to avoid potential sanctions by the US.”
The agent underlined that there are no offers for HDPE grades as the major has no allocation due to a turnaround. “The allocation for HDPE will only return to normal from September onwards,” he noted.
As for the market outlook, he said, “Despite some macroeconomic policies announced by the Chinese government, we prefer to remain cautious about the outlook.”
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