Mid-Eastern players: supplies still constrained
A Jordanian converter commented: “A major Saudi producer’s prices are carrying around a three digit premium over another Saudi producer’s May prices for the third consecutive month. Prices are very high and buyers have no option but to purchase given the approaching Ramadan, which is expected to revive buying interest in many end product markets. However, because of the very high levels asked, purchase amounts are restricted to buyers’ immediate needs. At the moment, we have not started any negotiations, but we believe that we might be able to receive some discounts from Saudi producers.”
Meanwhile, another Jordanian buyer commented, “A major Saudi producer reported having very limited allocations for another month. This restricted availability situation has been supporting sellers’ hefty increase amounts for the past few months. On another note, we are not feeling content with our end product demand. In spite of our rising costs, we are struggling to pass these hikes onto our end customers. Plus, regional political tension is also hampering our business as some of Jordan’s land borders are closed. Meanwhile, our suppliers are not willing to negotiate on their prices given the limited supplies they hold.”
Players reported Middle Eastern prices at $1450-1580/ton for LLDPE film, at $1550/ton for HDPE film and at $1660/ton for GPPS on CIF/CIP Amman, Jordan, 90 days deferred payment basis.
Meanwhile, a Lebanese film products manufacturer said, “We mostly do export business, but we are struggling to trade since borders are closed due to political tension in the region. At the moment, demand is very low and we do not expect any revival soon.” The buyer received Middle Eastern PP film at $1530/ton and HDPE film at $1550/ton for May on CIF Beirut, Lebanon, 90 days deferred payment basis.
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