Mid-Eastern PE, PP suppliers step back from initial hikes in Egypt
A converter reported concluding PE and PP deals for Saudi origin with decreases from initial January levels. The buyer obtained $30-50/ton discounts from a Saudi supplier compared to its initial January prices.
The converter’s recent done deal levels for Saudi LDPE, LLDPE and HDPE film are at $1160-1180/ton for LDPE film, at $1130-1150/ton for LLDPE film and HDPE film, at $1120-1140/ton for HDPE b/m and at $1030-1050/ton for PP raffia and inj., CIF Egypt, 90 days.
"The problems of opening the LCs at banks and the high exchange rates remain in place. Prices are very high now and we are struggling to preserve our margins,” commented the buyer.
Another manufacturer reported that a Saudi major implemented decreases of up to $150/ton on its January shipment offers, bringing their offers to $1160-1210/ton for HDPE, LDPE and LLDPE film, to $1050-1060/ton for PP raffia and inj. and to $1080-1090/ton for PP film and fibre, with the same terms.
“The producer’s initial levels were very high and not compatible with the poor import activity; however their done deal levels are reasonable now. Players disregarded the suppliers’ initial offers as they do not reflect the real state of the market. Therefore, they started to negotiate lower deals,” said the converter.
A different manufacturer, meanwhile, argued, “We managed to received discounts of only $20/ton, although we heard that the Saudi major is giving larger discounts to other players in the market as the producer is following different pricing strategies according to each of their customers.”
More free plastics newsPlastic resin (PP, LDPE, LLDPE ,HDPE, PVC, GPS; HIPS, PET, ABS) prices, polymer market trends, and more...
- Muted demand in Europe paves way for plenty of PP, PE offers in Turkey
- Import PE uptrend persists in China despite bearish winds mounting in local market
- 3-digit hikes in Oct PVC offers reinforce supply-driven bullishness in Asia
- Crude oil caught between demand woes and production disruption
- Tightness drives European PVC market up, prices near pre-pandemic levels
- Major LDPE markets touch multi-year highs on growing tightness
- A prospect for Q4 through uncharted waters of 2020 amid pandemic
- China's import PP markets maintain uptrend under shadow of oil-driven losses in Dalian futures
- Weaker domestic demand prompts Vietnam to export polymers
- European PP market ceases upward trend in September