Polyolefin prices remain under pressure in Middle East

In the Middle East, PP and PE markets have experienced an extended bearish tone in November owing toweak demand, comfortable supply as well as lack of real cost-support. In addition, an increasing number of PE and PP offers from the US has exerted a downward pressure on regional origins.

Saudi PE market continues to soften; PP bucks the trend

In Saudi Arabia, November PE offers indicated rollovers to up to SAR113/ton ($30/ton) decreases from October. According to players, new offers met previous projections amid thin demand.

Meanwhile, November PP prices from a Saudi major snapped a three-month downtrend and were assessed stable to slightly - $9/ton - higher compared to the latest October levels. According to players, the producer has tried to preserve its prices amidst dwindling trading activities. “Generally, relatively ample supplies amid thin trading and destocking activities keep the downward pressure on prices,” a distributor remarked.

UAE markets concede to thin trading

In the United Arab Emirates, Middle Eastern suppliers revealed their initial November PP and PE offers with rollovers to decreases when compared to latest October levels.

Meanwhile, local PP prices were assessed largely flat on a monthly comparison. “The majority of regional suppliers have initially tested the market with stable prices amidst fluctuating upstream costs, nevertheless, thin market activities given slow derivative demand and lack of supply concerns trimmed October high-ends and are likely to result in more discounts on deals,” a local manufacturer opined.

US materials maintain competitive advantage in East-Med

In East Mediterranean markets, US materials continued to form the low ends of the overall price ranges, as Middle Eastern suppliers have attempted to stem or alleviate the slide amid challenging market fundamentals given the ongoing economic crisis in addition to war threats.

US LLDPE and HDPE cargoes were offered at aggressively low prices, standing around $120/ton below Saudi origins. At the same time, US PP was offered at least $50/ton below regular Middle Eastern origins in Lebanon.

Players: No revival signs on the horizon for December

Over the near term, players across the bloc expect PP and PE prices to remain under the downward pressure of unresponsive demand, relatively comfortable supplies and irregular competitive origins. “We expect polyolefins prices to remain downbeat by 2025,” a regional player opined.