New Saudi Arabian PP, PE prices emerge in Middle East, Africa
A mostly stable trend is anticipated for the month while discounts are seen possible on deals so long as crude oil prices remain bearish. Indeed, NYMEX September crude oil futures touched slightly below $40/bbl during intra-day sessions on Monday.
A major Saudi Arabian producer announced their new August PP and PE prices to Egypt. Their prices indicate rollovers when compared to their latest July levels, according to a converter. “The major producer’s August prices came in line with our initial expectations. The import market is still quiet due to ongoing parity problems,” he noted.
A manufacturer who received local homo PP and HDPE film prices from the major mentioned, “Producers rolled over their offers for August announcements in line with the market expectations. Demand is slow compared to the same period of last year.” A trader in Egypt confirmed receiving steady PP and PE prices from a second Saudi Arabian supplier for August.
A PP and PE converter, who received new offers from the Saudi Arabian major, lamented, “Prices are very high and nobody can purchase at the current levels due to the cash flow issues locally. Meanwhile, collections are still problematic and demand for our end products is slowing.”
Overall, demand for import PP and PE cargos have been mediocre in Egypt mainly due to unstable exchange rates and problems in opening letters of credit at banks. On the other hand, local supplies are rather limited in the country as buyers prefer prompt materials to meet their requirements.
A buyer in another African market, Kenya, reported receiving flat PP and PE prices from the producer, except for a $30/ton discount for HDPE film grade. “Supplies are sufficient while we face silent end product demand amidst weak market conditions,” he stated.
In the Middle East, activity has been moderate in the last couple of months due to Ramadan and the following holidays. Demand did not pick up much as expected afterwards as players in the region started summer holidays this time, according to players.
A homo PP and HDPE injection buyer in the United Arab Emirates is yet to receive fresh offers from the major Saudi Arabian source so far, but said, “We expect to see rollovers from Middle Eastern and domestic sources considering that there are no supply issues.”
A buyer in Jordan reported receiving new LLDPE film prices from a different Saudi Arabian supplier this week. “The producer offered rollovers for their August shipment cargos. Demand has been quite weak in our market since late Ramadan amidst sufficient supplies, while export business is hampered too,” the converter commented.
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