Major Saudi producer reduces prices to Kenya and Tanzania
The distributor’s new offers indicate $20-50/ton decreases for PE and $80-120/ton decreases for PP when compared with the prices reported for the same producer’s cargoes at the beginning of the month. Meanwhile, overall supplies are reported to be ample for all products and the distributor is still open to negotiations for $10-20/ton additional discounts in return for serious counterbids.
“Buyers resisted the initial offer levels as they were anticipating further decreases. Plus, the approaching Christmas and New Year holidays are also pushing buyers away from the market. Amidst constantly declining upstream costs, buyers are very cautious when it comes to making fresh purchases. Our sales have dropped almost by half when compared with November and is now the slowest it has been for the last three years. Lower crude oil and naphtha prices are the main reasons behind these decreases and we anticipate further declines for January,” the distributor added.
Looking at the distributors’ offer levels, they stand at $1540/ton for HDPE film, $1510-1520/ton for HDPE blow moulding and injection, at $1500-1520/ton for LDPE film and LLDPE film on a CFR Mombasa, Kenya/ CFR Dar es Slam, Tanzania, 90 days deferred payment basis. Meanwhile, PP offers are at $1400/ton for raffia and injection and at $1470-1480/ton for PPBC injection with the same terms.
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