Mid-Eastern producers announce Dec PP, PE prices to Egypt
A major Saudi producer issued rollovers on their PE prices from their initial November levels. However, when compared with the producer’s latest done deal levels, the new prices indicate $40/ton increases.
For PP, the producer issued decreases of to $10-40/ton from their initial November levels. The producer’s PP film and fibre prices are down $10-20/ton from initial November levels but they are $70/ton higher than their latest November deals. For homo-PP, the producer’s December prices are down by $40/ton from the initial November levels but they are up $50/ton from the latest November prices. The producer also lowered their PPBC injection prices by $40/ton but kept their PPRC injection prices steady on a month over month basis.
Now, they are offering LDPE, HDPE and LLDPE film at $1370/ton, HDPE b/m at $1400/ton and HDPE injection at $1420/ton on CIF Suez, 90 days deferred payment basis. The producer offers PP film at $1230/ton, PP fibre at $1240/ton, PP raffia and injection at $1200/ton, PPBC injection at $1250/ton and PPRC inj. at $1380/ton with the same terms.
Meanwhile, a Kuwaiti producer’s new prices indicate $10-20/ton decreases from their initial November levels, according to players’ reports. The producer offers both LLDPE and HDPE film at $1280/ton on CIF, 90 days basis.
A converter reported, “Saudi and Kuwaiti producers appear to hold limited quotas for December. The Saudi producer appears adamant regarding their offer levels as they highlight that they are not willing to negotiate this month. However, players in the market continue to assume that discounts will be possible for this month. Plus, import market purchases continue to be hindered by issues opening letters of credit as well as higher exchange rates. Local supplies are still not very comfortable but prices follow a softer trend as the year end is approaching.”
A trader commented, “A major Saudi producer’s new PE offers indicate rollovers while their PP offers witnessed some decreases. We think that current offer levels of the producer are still very high when considering thin demand. Plus, import demand is even weaker than local demand.”
Another converter also confirmed the new December levels from a major Saudi producer and added, “We think that the initially announced December levels are still too high given the weak market conditions. We believe that the lower done deal levels will be very likely as the month proceeds.”
A different converter confirmed the major Saudi producer’s PE rollovers and PP decreases. He said that the new levels are still high but he highlighted that the limited supplies on the Saudi producer’s side helps them remain firm regarding their offer levels. “Despite their rather limited quotas, the Saudi producer’s allocations are better than the rest of the Middle Eastern producers’ availability and therefore, they may take advantage of this situation. However, as happened during the past couple of months, we anticipate lower done deal levels from the producer in the days ahead,” he added.
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