S. Arabia’s local PP, PE markets stable to soft for 4 months in a row in Aug
According to a trader’s report, a Saudi major rolled over its prices for homo PP and LDPE film while issued declines of SAR113/ton ($30/ton) and SAR188/ton ($50/ton) for HDPE film and LLDPE film, respectively from their latest July offers.
“Activities are slow and supplies are good, hence players were anticipating price reductions. The rest of the producers are yet to reveal their offers while we are expecting them to adopt a similar price policy,” commented the trader.
After the Saudi major, another Saudi producer also rolled over its PP offers, and lowered its PE offers by SAR37/ton ($9/ton) for LLDPE film and by SAR112-113/ton ($30/ton) for HDPE grades compared to July.
Players commented that Saudi suppliers were unable to reflect the recent gains in crude oil markets on their new offers as Petro Rabigh’s unexpected production issue in late June has not caused a serious supply limitation in the country given slow trading activities. Some players argued that demand has not improved as much as expected following the end of Ramadan and the Eid holidays amid unfavorable economic environment.
The latest data also showed that Saudi Arabia’s GDP weakened by 0.5% in the first quarter of this year on a yearly basis, recording the first contraction in eight years due to a shrink of 2.3% in the oil sector after the country’s involvement in OPEC’s oil cut deal.
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