Middle Eastern players continue to complain of tight availability
Meanwhile, a converter operating in Lebanon also noted that they received new March PE offers from an Emirati producer with increases up to $70/ton from February. The converter also reported that a major Saudi Arabian producer is still adamant on their offer levels and they refuse to give discounts. “Overall supply levels are very tight while the government’s new regulations regarding clearing imported goods are hindering trading activities. The new regulation requires an inspection of each container and this situation is clogging the ports. At the moment, demand is very good, but due to tight supplies not many transactions can be materialized,” he added.
A Saudi Arabian trader also commented, “Three Saudi Arabian producers were having PP maintenance shutdowns, which resulted in tight supplies. During this past week, these producers’ shutdowns came to an end but it is still too early for supplies to get comfortable. Meanwhile, given better netbacks in Asia and Europe, Middle Eastern producers prefer to spare larger quotas to these regions. This situation has caused overall availability to be even more limited in Middle Eastern and African markets."
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