Mid-Eastern January PP,PE prices start to be announced to Egypt
A buyer, who received new prices from the Saudi producer said, “The Saudi producer’s new prices indicate decreases of around $200/ton when compared with their initial December levels. However, we still find the producer’s new prices above our expectations. This situation have created some question marks amongst buyers regarding other regional producers’ offers.”
Another buyer said, “We received new prices, but we anticipate further discounts from the producer because end products markets are still performing poorly. We are receiving no inquires from our end customers. We also anticipate decreases from the local HDPE producer SIDPEC.”
A trader remarked, “The producer’s new prices indicate $150-210/ton decreases for PE and around $160/ton drops for PP when compared with December levels. Before deciding on our next move we prefer to hear other Middle Easter producers’ offers.”
Meanwhile, a distributor commented that the producer’s decrease amounts had been expected by the market and added that the discount difference in Saudi Arabia and Egypt stems from freight costs. “However, the market is still quiet as players are mostly waiting to hear other producers’ offer levels. We think that import business will be affected negatively by these discounts since buyers will turn to the local market amidst these price crashes,” he added.
The Saudi producer offers HDPE film at $1320/ton, HDPE injection at $1340/ton, HDPE b/m at $1330-1340/ton, LLDPE film at $1360/ton, LLDPE injection at $1410/ton and LDPE film at $1360-1390/ton on CIF, 90 days basis. Their PE prices indicate $110-210/ton decreases from December.
Meanwhile, the producer offers January PP raffia and injection at $1340-1350/ton, PP film at $1370-1380/ton, PP fibre at $1370-1390/ton, PPRC Type 3 at $1600/ton, PPRC injection at $1470/ton and PPBC injection at $1400-1410/ton with the same terms. The producer’s new January levels indicate $110-180/ton decreases from December.
A trader commented that even after the Saudi producer’s significant decreases, prices still have room to go down as there are more competitive prices in the market. “Two other Middle Eastern producers offers PP raffia at $1200/ton on CIF, 90 days basis, $140-150/ton below the Saudi producer’s levels.”
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