Major Saudi producer responds to weak market conditions in Egypt
As the week proceeds and more Middle Eastern producers approach Egypt with more competitive prices, the Saudi major elected to adjust their prices downward in line with weak market conditions. According to players, their new prices indicate additional decreases of $40-50/ton for PP and $50-100/ton for PE. The larger drop amount on PE is for regular customers who make larger purchases.
Now, the producer’s cumulative decreases reached $210-330/ton for PE and to $340-350/ton for PP. The Saudi producer’s most updated prices now stand at $1250-1300/ton for HDPE, LDPE and LLDPE film, $1350/ton for HDPE injection,$1310/ton for HDPE blow moulding, $1400/ton for LLDPE injection, $1150/ton for PP raffia and injection, $1190/ton for PP fibre, $1180/ton for PP film, $1230/ton for PPRC injection, $1220/ton for PPBC injection and at $1360/ton for PPRC (Type 3) injection on a CIF Suez, 90 days deferred payment basis.
Players, however, report that even larger discounts are achievable in case of deals. A trader who received these revised levels commented, “The competition amongst suppliers is very severe in the market while buyers are still waiting for prices to reach the bottom. Now, the new offer levels appear more reasonable. Therefore, we are considering getting back to the market to make some fresh purchases.”
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