Saudi major adopts divergent policies for June PE in global markets
In China, an agent of the Saudi major reported that the producer lifted its offers by $10/ton for HDPE film while decreasing its LLDPE film offers by $20/ton and LDPE film offers by $30-40/ton when compared to May. “The producer lowered its LDPE and LLDPE prices as these products see the weakest demand. Retreating LLDPE futures prices were also effective on its softer pricing. However, HDPE received support from limited supplies as well as relatively stable demand,” opined the agent.
In Turkey, PE packagers received June offers from the major supplier with $10/ton hikes for HDPE film and rollovers for LLDPE film with respect to the latest May deals. A shopping bag manufacturer highlighted, “Buying appetite has been weak particularly for LDPE and LLDPE for the last weeks under pressure from economic concerns, Ramadan lull and the approaching political elections. Yet, tight supplies kept HDPE film relatively firm which also came through the producer’s June policy.”
In the meantime, the Saudi producer issued rollovers on its June PE prices to Egypt. This policy was not caught by surprise among buyers in the wake of weak market conditions as well as slow demand during Ramadan. Egyptian players generally expect other suppliers to follow suit in rolling over their prices for June.
In Africa, not many PE offers have been announced so far for June although a trader in Kenya reported that he received fresh prices from the Saudi Arabian major. Accordingly, the producer lowered its HDPE film prices by $10/ton from May while issuing a larger cut of $50/ton for LDPE film. “We attributed the falls from our supplier to slow demand amid rainy season, ongoing cash flow problems and comfortable supplies,” noted the trader.
A manufacturer in Tunisia expressed his projection for rollovers to slight drops based on sluggish activity during Ramadan. “We are yet to be offered for the new month though,” he added.
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