Players in Jordan and UAE receive August PP, PE prices
A film products manufacturer in Jordan reported, “We received new August HDPE film prices from two different Saudi Arabian producers at $1350/ton and at $1410-1420/ton on a CIF Aqaba, Jordan, 90 days deferred payment basis. A major Saudi producer, who offers the highest prices, issued $60-70/ton decreases from July. However, we believe these are just the initial offer levels and that further decreases are likely in the days ahead. In our opinion, this producer is testing the market’s reaction with these levels. Meanwhile, we received another Saudi producer’s offers and this time at much more competitive levels. Now, we are trying to negotiate with this producer before making fresh purchases. In general, the market is weak in Jordan and end product markets perform slowly. Apart from these factors, clouds over the country’s political situation have not scattered.”
Another Jordanian buyer commented on end demand by saying, “Demand has been slow since the Ramadan holiday. In addition, Jordan has lost one of its main export destinations, Iraq. Borders to Iraq have been closed and this situation hindered our end product business as most of our exports were directed to this country. As a result, consumption of our end products has lessened. Players are not rushing to make new purchases.”
A different Jordanian buyer operating in Amman also reported receiving new August PP and PE prices from different Middle Eastern producers. “A major Saudi Arabian producer’s prices are $40-60/ton down from July for PE products and $80-100/ton down for homo-PP. However, this producer’s offers are still not competitive with respect to other producers’ lower August levels. In general, all Middle Eastern producers’ supplies are fine, but demand remains restricted to the immediate needs in the market. We are also keeping our purchases restricted to our urgent needs given our weak export business.
The buyer received Saudi offers at $1420/ton for HDPE film, $1440/ton for LDPE film, $1420/ton for LLDPE c4 film and at $1280-1300/ton for PP raffia and injection on CPT Amman, Jordan, 90 days deferred payment basis. Meanwhile, the buyer received offers from different Qatari suppliers at $1370/ton for HDPE film, $1390/ton for LDPE film and $1380/ton for LLDPE film on CIF Amman, 90 days deferred payment basis. Lastly, the buyer obtained Emirati offers at $1370/ton for LLDPE film and at $1340/ton for HDPE film with the same terms.
Meanwhile, in the United Arab Emirates, a trader received new August prices both from the local and import markets. The trader, who received Saudi offers with $20-40/ton decreases for PE and $30/ton decreases fro PP, also received the local producer’s PP offers with $70/ton reductions and PE offers with $50/ton decreases from July.
The trader commented, “Market sentiment is weak and the trend is declining. Meanwhile, supply levels are comfortable. Despite their decreases, the Saudi producer’s offers form the high end of the overall Middle Eastern import range and do not meet buyers’ expectations. This producer’s levels see resistance from buyers, who are pushing for lower prices amidst very comfortable stocks.”
The trader received Saudi HDPE film at $1450/ton, LDPE film at $1430/ton, LLDPE film at $1390/ton and PP raffia and injection at $1360/ton on a CIF Dubai, United Arab Emirates, 90 days deferred payment basis. Meanwhile, the trader received LLDPE film offers from Qatar at $1350/ton and HDPE film offers from Kuwait at $1470/ton with the same terms. In the local market, the trader received PP raffia and injection prices from the local producer at $1270-1280/ton and HDPE film at $1310/ton on FD Dubai, United Arab Emirates, cash basis.
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