Middle Eastern PE producers unveil price hikes for April
In Turkey, Middle Eastern producers announced this week $100-120/ton increases for PE from last month. A major Saudi producer’s hikes were more modest at $60-80/ton for HDPE film and $40/ton for LLDPE film. A source from a different regional producer commented, “Overall supply is likely to remain tight. Higher April ethylene contracts in Europe, lack of South Korean suppliers and firm prices and stronger ethylene costs in Asia are supporting the trend.” Another supplier reported seeing better demand for LDPE than LLDPE for the new month. This was in line with market talk about domestic producer’s tight supplies for LDPE.
A buyer in Turkey, meanwhile, argued, “We don’t expect to see large purchases on the part of converters unless end markets revive. We hope to see improved end demand by mid-April. Collection issues prevail in the market, which causes converters to sell cautiously and keep their stocking activity to the bare minimum.”
In Egypt, two Middle Eastern producers are seeking increases ranging between $70-120/ton on the month. Buyers attributed these substantial increase requests to limited April quotas from the sellers. A converter who received $50/ton hikes from a major Saudi Arabian source said, “We are waiting to hear more April offers before starting our purchases.” A United Arab Emirates producer announced increases of $110-120/ton for new shipment PE cargos compared to March citing their tight availability.
A converter in Lebanon reported, “A source at a major Saudi Arabian producer informed us that increases of up to $50/ton might be issued for April. Currently, demand is slightly weak as more suppliers are awaited to reveal their fresh prices. As for end markets, we expect demand to improve soon ahead of Ramadan since people will start their preparations for that month.” A buyer in Jordan also expects price increases from the Middle East in line with the firming global trend.
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