Mid-Eastern PP, PE prices revealed lower for Dec to Turkey
In the PP market, new shipment homo PP offers from the Middle East formed ranges of $970-1000/ton for PP raffia and $1000-1030/ton for PP fibre, all on a CIF Turkey, subject to 6.5% customs duty, cash.
A global producer sold Saudi Arabian cargos at the low ends of the abovementioned ranges. A source from the seller stated, “We concluded some deals at discounted levels with a few customers this week amidst still weak demand. Although the short term trend may remain bearish, PP prices are not likely to remain below $1000/ton over the medium term.”
Another producer whose PP raffia prices stood at $1000/ton lamented, “We announced our PP prices with $30/ton reductions. Yet, we are still struggling to compete with cheaper duty free origins. Regarding demand, we are selling normally to our regular customers.”
A big bag converter argued that the most recent December levels are still unworkable, saying that the reasonable offer level for cargos subject to 6.5% duty would be $920-930/ton CIF for PP raffia. “We will be visiting Plast Eurasia that will take place on December 3-6 although we are not a buyer for now. We expect to hear more competitive levels from sellers at the fair.”
In the PE market, overall price ranges including offers for various Middle Eastern origins were pegged at $1150-1170/ton for LDPE film and at $1170-1190/ton for HDPE film and LLDPE c4 film CIF Turkey, subject to 6.5% customs duty, cash. “We reduced our December prices by $30/ton for LLDPE and $40/ton for LDPE while the response from the market has been so-so,” a source from a Middle Eastern producer stated.
Prompt materials of some regional producers from bonded-warehouses were reported to be priced at $1240-1250/ton for LLDPE c4 film, $1280/ton for HDPE blow moulding and $1260-1280/ton for HDPE film FCA Turkey, subject to 6.5% customs duty, cash. A packager who received those prices and purchased some material said, “We received $40/ton drops from last month from our supplier. PE prices will lose more ground this month before they turn up.”
A Middle Eastern producer reported having normal PE allocations except for blow moulding grade, for which supply is tight. “We lowered our PE prices by $20-30/ton from November,” a producer source stated. A buyer, meanwhile, could procure half of his requirements from another Middle Eastern supplier given the seller’s low HDPE film stocks in the bonded warehouse.
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