Middle Eastern PP, PE sources seek Jan hikes in Turkey
A global producer issued an increase of up to $20/ton for Saudi Arabian LDPE film, while applying $20-30/ton hikes for Saudi Arabian homo PP grades. “Our PP offers are mostly notional as we do not have material on hand for the time being,” reported a producer source. An agent of another Saudi Arabian producer reported that they will not be able to receive January allocation from their supplier.
A sack maker reported, “We had to accept $20-30/ton higher levels compared to last month as Petkim’s price hike contributed to the firm scene. Moreover, there were not many alternatives.” The domestic producer implemented $20-30/ton increases on its PP list prices on Monday.
A Saudi Arabian major revealed its January prices with $20-50/ton increases for LLDPE c4 film and HDPE film compared to the December done deals concluded with various manufacturers. Earlier this week, the market talk was that the source may return with around $40/ton hikes.
A second Middle Eastern PE producer returned with increases of $20/ton for LDPE grades and $40-50/ton for LLDPE and HDPE film for the new month compared to their previous deals. “We will not have much volume this month either. We already concluded some deals at our current levels despite the overall year-end lull,” a producer source noted.
Some buyers, in the meantime, believe that whether Middle Eastern suppliers will achieve their hike targets fully or not will depend on demand. “We think more sellers will come with increase requests but only slight gains or rollovers will be achievable,” a packager argued. Another buyer was also not feeling sure if the prevailing prices will see acceptance as there is no activity in the market at the moment and he hopes the picture will be clearer next week.
According to the trader, most Turkish converters are keeping their purchases limited to their requirements as they believe that the market may stabilize in February when Chinese players will be out to celebrate New Year holiday. “Why would we use our cash now if there is a possibility that prices may roll over after rising in January as a slow holiday atmosphere is around the corner in Asia,” a buyer agreed.
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