Mid-Eastern producers approaching PE markets for November
Accordingly, prices to China and Turkey are pointing to declines for the new month while regional producers have sought rollovers in Egypt’s import PE market so far.
In China, a Saudi Arabian major announced its offers with $10/ton drops, while prices from other Middle Eastern suppliers were down more visibly by $40-60/ton for LDPE and $60/ton for LLDPE when compared to last month.
Traders in China marked, “The depreciation of the yuan against the USD along with the ongoing concerns about trade dispute between China and the US keep demand for import PE subdued as they overshadowed the news that the government raised export rebates. Players are also unwilling to build stocks amid bearish ethylene prices.”
In Turkey, a Middle Eastern producer applied $10/ton cuts on LDPE and HDPE film, while lowering LLDPE by $40/ton from their last October deals. A source from the producer highlighted, “We have concluded some deals already. We hope to boost our sales during Eurasia Packaging Fair in Istanbul at the end of this week.”
The seller’s pricing policy was in line with widespread expectations based on plunging spot ethylene prices in Asia, pressure from attractive US PE cargos and persistently cautious demand in Turkey.
In Saudi Arabia, meanwhile, the major reduced its PE offers to its domestic market by $50/ton for HDPE film and LLDPE c4 film on a monthly basis. The major’s LDPE film prices posted a larger decline of $90/ton.
In Egypt, rollover requests are now mostly in place for November. However, a source from a Saudi Arabian producer commented, “Demand has remained restricted to the basic needs. We revealed mostly flat offers in line with a major Saudi producer. Yet, minor discounts might be achievable for serious purchases during the month.
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