Players tread with caution in Mid-Eastern and African PP, PE markets
Producers adopt steady to soft pricing strategy for Jan in Saudi Arabia
In Saudi Arabia, a major local producer has revealed its new PP offers with decreases of SAR75/ton ($20/ton) from last month while other domestic producers approached the market with steady pricing strategies.
Demand was reported largely quiet, with most players expecting it to pick up only after the Chinese New Year holidays in February. Meanwhile, local PE prices recorded the lowest year start since ChemOrbis started keeping records as domestic suppliers revealed their January offers with rollovers to up to SAR70/ton ($18/ton) decreases from December.
Rollovers to decreases continue for Jan in UAE
In the United Arab Emirates, domestic and regional producers approached the country’s PE market with rollovers to decreases from the previous month as buyers continued to secure cargoes on a hand-to-mouth basis.
Import PP hits more-than-a-year low in UAE
Emirati players also received decreases of up to $50/ton from the Middle Eastern suppliers for PP grades. The latest decreases pulled the country’s PP market to its lowest levels in almost 14 months, according to the weekly average data on ChemOrbis Price Wizard.
Despite attempts by producers to buoy up demand by lowering their offers, most players opted for a wait-and-see attitude in the market.
SIDPEC, ETHYDCO lower offers to spur demand in Egypt’s PE markets
Egypt’s two local PE producers, SIDPEC and ETHYDCO, have announced their new offers for January with decreases ranging from EGP300/ton ($17/ton) to EGP1100/ton ($61/ton) from their latest December offers.
A source from SIDPEC also stated, “Our first production line for HDPE film and b/m will be shut for a week for a planned maintenance. However, we will continue supplying to our customers during the period of maintenance shutdown as we have enough inventories.”
In the import market, the major Saudi supplier unveiled its initial January PE offers with rollovers from its latest December levels, which came in line with players’ expectations.
A local PP producer also decreases prices in Egypt
In Egypt’s import market, one of the local producers, EPPC, lowered its prices by $40/ton from last month, marking the second consecutive month of declines.
On the other hand, Middle Eastern producers revealed their January PP offers to Egypt at mostly stable levels amid blurry market outlook while most players expect January deals to wrap up at lower levels due to poor demand.
Saudi major opts for decreases in Jordan, Algeria
Although the producer mostly rolled its export prices for January, the producer chose to cut its PE offers to Jordan by around $20-70/ton and drop its PP offers by $60/ton from December.A similar picture was seen in Algeria , where the Saudi major announced its new PP offers with decreases of $20/ton while the producer’s latest PE offers saw larger drops of up to $50/ton from last month.
Nigerian ELEME holds PE prices steady, cuts PP offers for 2nd straight month
Nigerian players received decreases of NGN11,000/ton ($30/ton) for PP raffia and injection, and NGN13,000/ton ($36/ton) for PPBC inj. from the country’s local producer ELEME. The local producer’s PE offers, meanwhile, stood unchanged from December.
Meanwhile, the Saudi major’s latest offers to Kenya stood mostly within the range of the previous month. A converter noted that demand has extended the weakening into the post-holiday period.
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