Mid-Eastern PP, PE markets at a standstill as demand falters for April

Across the Middle East, April PP and PE offers were revealed unchanged over March but discounts were achievable, after having followed an upward trajectory since February. Improving supplies, following the end of the shutdown season, and a notable drop in demand amid the seasonal lull given Ramadan and Eid al-Fitr holidays appear to have caused the recent softening.

New offers in line with expectations in S. Arabia

In Saudi Arabia, a major local supplier unveiled its new April PP, PE offers with rollovers from March. Likewise, another local producer kept their offers unchanged for April.

Saudi players said that April offers largely matched expectations, which had already been shaped amid a lack of downstream support and a recent return from shutdowns. “Trading is expected to remain limited with the holiday season lurking in,” commented a local distributor.

Prices rolled over while discounts achieved in UAE

In the United Arab Emirates, players reported receiving new import April PP, PE offers from a Saudi major with rollovers as compared to the initial undiscounted March levels. “However, sellers retreated from their initial offers this month too and buyers managed to achieve up to three digits discounts,” a manufacturer stated.

On a related note, the local producer, Borouge, also rolled over its April PP prices as compared to March; however, up to $60/ton lower offers were also heard from the producer by the middle of the month with players reporting weak overall activities.

East Med markets succumb to economic hurdles

In East Mediterranean region, a major Saudi producer’s PP, PE offers in Jordan and Lebanon were announced largely stable from the previous month. “We believe that lower deals could be achievable; however, we are not rushing to make new purchases as the market is facing major economic slowdowns,” a trader based in Lebanon illustrated.

Manufacturers in the region have been facing sharp increases in costs amidst rising inflation and hence, demand for finished products has been suffering.

May outlook blurry across regional markets

Players across the region expect resin prices to hover around their current levels amidst limited trading approaching Eid al-Fitr holidays. Whether the recent surge in crude oil prices after the OPEC’s cut in oil output earlier this month will reflect on the sentiment is yet to be seen. Meanwhile, players may also return to replenish stocks after the holidays, which may support the sentiment.