LATEST NEWS: Saudi major cuts July PE, PP offers to China

An agent of a major Saudi Arabian producer reported that the supplier reduced July PE and PP offers to China when compared to June.

The producer lowered its new offers by $90/ton for LDPE film, $70/ton for LLDPE film and homo-PP raffia, and $60/ton for HDPE film when compared to last month. The recent offers are standing at $1380/ton for LDPE film, $1100/ton for LLDPE and HDPE film, and $1080/ton for raffia, all on CIF China, cash basis.

The agent commented, “Covid-19 measures were eased in early June but now there is an uncertainty due to the resurgence of new infections. Although the peak season is approaching, demand at home is weak as many buyers are not replenishing materials or just buying on a need basis. Buying interest from export outlets is also slower and many orders are shifted to the Vietnam market instead. Adding to the weak domestic factors is the aggressive rate hike by the US and tougher global economic outlook, also signaling a negative outlook for the near term.”