Mid-Eastern PP, PE markets stabilize in January, turnarounds in the spotlight for February

Across the Middle East, PP and PE markets have exhibited steady to marginal up or down movements for January. Reduced supplies from regional producers following the year-end destocking as well as the annual turnaround season in Q1 have not been enough to propel markets visibly higher this month, unlike in other regions, while all eyes are now on next month to see if this will provide leverage to markets.

Saudi LDPE sustains uptrend, PP back to October levels

In Saudi Arabia, new January PE offers from a major domestic producer were assessed largely flat from December except for LDPE film, which remained upbeat indicating SAR75/ton ($20/ton) increases from a month earlier.

Meanwhile, PPH offers indicated SAR41/ton ($11/ton) decreases as compared to the latest December levels, snapping a 2-month uptrend. This downward revision in January has largely wiped out the gains recorded during the past two months. According to market sources, demand remains muted as players are barely placing inquiries, which was also the case during Q4 2024.

CIF UAE flat, local offers up m-o-m

In the United Arab Emirates, January import PP and PE prices surfaced with rollovers from latest December levels after they recorded $20-30/ton decreases over initial December levels. “High-end levels meet resistance as end sales remain disappointing,” a distributor remarked.

Conversely, locally held PP offers were assessed $30/ton higher as compared to a month earlier. According to local sources, restrained spot PP availability supported price hikes despite below-average demand.

Subdued demand, margins recovery balance East-Med markets

In the East Mediterranean region, initial January PE and PP prices both in Jordan and Lebanon emerged mostly with rollovers after they followed a stable to softer trend in December. Generally, persistently weak economic conditions and political unrest continued to hinder smooth trading across the region. “Buyers either buy on a limited basis or remain on the sidelines,” commented a local source.

Eyes on supply chain

Over the near term, the absence of real demand boosters and the ongoing political challenges across the region are expected to remain a drag on February markets. Nevertheless, regional supplies will continue to be limited in the midst of the planned turnarounds.

In the PP market, Oman’s OQ is planning to return from a long shutdown by the end of January while Saudi Kayan will shut its PP unit in Al-Jubail for maintenance in mid-Jan for two weeks. Saudi Natpet is also reportedly planning a maintenance shutdown in Yanbu for a month, starting from late January. Yanpet will also reportedly have a turnaround, but details are not revealed as it’s not confirmed.

As for PE, Saudi Kayan was planning to shut its HDPE unit in Al Jubail in mid-January while market sources reported that Saudi Tasnee shut its HDPE plant under SEPC at the same time for a brief maintenance, although the producer claims having no scheduled shutdowns for Q1. Another unconfirmed turnaround news for February is from Saudi Yansab, who owns HDPE and LLDPE plants in Yanbu. Saudi PetroRabigh will also have scheduled maintenance in April, according to ChemOrbis Production News Pro.

These shutdowns have already sparked concerns about reduced allocations from the Middle East across the globe, even though demand is not brilliant in any markets. Still, they are expected to boost the sentiment in regional markets as well.