Saudi Arabian major issues October PP, PE prices in Turkey

Buyers in Turkey reported receiving new October offers from a major Saudi Arabian producer this week. The producer issued slight discounts for homo PP fibre while they rolled over their PE prices from their last September levels.

In the PP market, the Saudi Arabian producer’s PP fibre prices are reported at $1020/ton CIF Turkey, subject to 6.5% customs duty, cash. Prompt materials of the producer are priced at $1040/ton FCA Turkey, subject to 6.5% customs duty, cash. Both levels are down $10/ton from last month.

A PP packager commented, “We believe that the producer will conclude its deals at slightly lower levels than its initial offers since demand in Turkey is not encouraging. Many manufacturers are still struggling with cash constraints. Even if crude oil prices move up following the recent preliminary consensus from OPEC to cut oil output, demand will remain as the main factor to set the trend.” Following OPEC’s decision reached during the meeting in Algeria, crude oil prices settled with increases of more than $2/bbl both on NYMEX and ICE Brent futures markets on Wednesday.

Meanwhile, the producer’s LLDPE c4 film and HDPE film offers emerged flat from the previous month. Buyers were offered at $1150/ton and $1150-1160/ton, respectively for those products on FCA Turkey, subject to 6.5% customs duty, cash basis.

“We were hoping to get some drops from the supplier this month but it seems Middle Eastern sellers will try to obtain rollovers at least in October. Several regional sources cite their limited allocations for their firm stance,” a PE converter said.