PE producers approach Middle East and Africa with decreases for May
In Egypt, a major Saudi Arabian producer announced fresh HDPE offers with $20/ton decreases from last month while applying larger decreases of $100-120/ton for LDPE and LLDPE. “Other Middle Eastern producers will probably follow suit,” noted players. On the other hand, a buyer in nearby Turkey was offered rollovers for LLDPE and $20/ton drops for HDPE by the producer.
A different Saudi producer issued $50/ton drops for LDPE film to Egypt, with players commenting, “Buying interest remains sluggish since converters still deem the current prices high.”
In the United Arab Emirates, a film manufacturer received monthly decreases between $20-50/ton from several Middle Eastern suppliers. “Many players have already wrapped up their deals during the past two months amidst sufficient supplies,” he reported.
In Jordan, the Saudi major reduced its new offers by $10-20/ton for LDPE, LLDPE c4 and $30-50/ton for HDPE film. Buyers in the country were not caught by surprise as they pointed to subdued pre-Ramadan activity. A buyer in Algeria also received $40/ton lower HDPE offers from the major but preferred to wait until hearing prices of other sellers.
According to a source in Lebanon, a Middle Eastern producer lowered its PE offers by $20-40/for May. “As buyers already purchased some material ahead of Ramadan, the market has started to lose pace. Plus, PE availability is ample these days,” marked a participant.
Buyers in Kenya, Nigeria, Algeria and Tunisia reported that regional producers approached customers with rollovers to decreases. They stated, “We expect to hear downward adjustments in the latter part of the month based on adequate PE supplies and discouraging end product demand.”
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