November PP, PE offers higher in Jordan, Lebanon

The two reference markets for East Mediterranean saw a continued firming in November PP and PE offers. Despite rising prices, demand remained moderate-to-weak across the markets, largely as a result of a second wave of COVID-19 restrictions and a weak macroeconomic environment.

In Jordan, PP offers from a major producer were $30-50/ton higher from October while PE offers saw monthly increases of $50/ton.

These changes brought the latest prices to $1030/ton for PPH raffia and inj., $1050/ton for PPH film, $1070/ton for PPH fibre, $1120/ton for PPBC inj., $1020/ton for LLDPE C4 film, $1220/ton for LDPE film and $1070/ton for HDPE film, CIF Aqapa.

“PE allocations are lower compared to last month. Market dynamics are moderate and they are expected to weaken as we head into the end of the year,” a trader based in Amman said.

In Lebanon, the major Saudi producer increased offers PPH grades by $30/ton and by $10/ton for PPBC inj. and PPRC inj. as compared to October. For PE, the producer’s HDPE film and LLDPE film offers were higher by $10/ton while LDPE film and HDPE b/m offers saw a larger increase of $40/ton.

Accordingly, the latest offers were at $1010-1030/ton for PPH raffia and inj., $1110/ton for PPBC inj., $1190/ton for PPRC inj., $990/ton for LLDPE C4 film, $1210/ton for LDPE film, $1050/ton for HDPE film, and $1010/ton for HDPE b/m., CIF Beirut.

Market players held slightly different views on the current state of supply in Lebanon. However, most agreed that weak buying activities could offset supply limitations. “We are still waiting hear from other Middle Eastern suppliers,” a trader based in Fanar said, before adding that further hikes could be on the horizon.

A new countrywide movement restriction, from 9 pm to 5 am, took effect on November 2 in Lebanon. A five-day 24-hour nationwide lockdown will also be imposed in Jordan, starting from November 11. The process of the formation of a new government has kept the Lebanese economy in a state of crisis, compounded by the ongoing liquidity crisis. The COVID-19 the crisis has also taken a toll on Jordan’s economy, which is among the smallest in the Middle East. In its latest forecast for the Jordanian economy, the IMF said it expected a decline in GDP growth of 3% this year.