March expectations call for further hikes on PP, PE in ME and Africa
A distributor from Algeria reported, “Middle Eastern producers announced February prices with significant increases and we also expect March announcements to come with further increases. However, the market status is not that bright in the midst of slow demand and limited supplies.”
A Saudi manufacturer lamented about slow market conditions due to weak demand and poor economic conditions while saying, “We believe that demand will improve as of March and April in line with the Ramadan preparations. The global trend is also firming up on higher costs and limited supplies. Producers in Saudi Arabia had to reduce their quotations due to their short supplies in February.”
A buyer operating in the United Arab Emirates noted, “Prices posted hefty hikes amid limited supplies. There are plant shutdowns and the fire at Borouge reinforced tightness in the local market. March announcements will come with further hikes unless availability eases.”
Players are currently waiting for the new announcements to have an idea for the upcoming period. Despite widespread bullish expectations, there are some players who think that further hikes will not be absorbed given slow demand in many countries due to the parity issues and poor economic conditions.
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