Middle Eastern PE producers reveal February hikes to Turkey
A major Saudi Arabian producer applied increases of $60-70/ton for LLDPE c4 film and $50-60/ton for HDPE film for prompt materials from bonded-warehouses compared to January. Two buyers who were offered by the seller commented, “The producer’s most recent prices are very high and we plan to negotiate with them for some discounts.”
A global polyolefin producer started to seek $30/ton higher prices for Saudi Arabian LDPE film with respect to late January. “Overall LDPE supplies are considered tight due to some supply issues across the Middle East. We don’t have much quota for February either,” a producer source noted.
“We expected supply to Turkey could ease from the Middle East during Lunar New Year holidays but it seems suppliers would prefer to allocate their quotas for the post-holiday period in China where a strong return from buyers is projected,” a trader stated.
A different Middle Eastern producer lifted its prices by $60/ton for LLDPE c4 film and $40-50/ton for HDPE film grade. “We are yet to set our new price for LDPE film for the time being given our reduced supplies. Our LDPE and LLDPE production is particularly affected by the recent production issues and we are not willing to negotiate on our prices. For HDPE and LLDPE, we already concluded some deals with our regular customers,” a source from the producer reported.
A packaging converter who received fresh prices from the producer lamented, “We found the most recent PE prices very high to work with. However, the supplier stands firm on their offer levels blaming their already limited materials.”
Similarly, a trader in Turkey confirmed rising import offers from the region and said, “A contact of ours in Saudi Arabia told us that his local PE supplier applied $40/ton increases for February.”
Apart from initial reactions from manufacturers to the PE hikes, some players comment that the lack of ample PE supplies will help sellers to obtain their hike targets to some extent especially if China returns from holiday on a firm note, as projected.
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