Saudi major announced Oct PP, PE offers to Jordan, Algeria

Players in Jordan and Algeria have started to receive initial import PP and PE offers from a Saudi major for October with increases ranging between $20/ton and $60/ton compared to the latest September offers.

In Jordan, the Saudi major lifted its PP offers by $60/ton on a monthly basis to $1230/ton for PP injection and raffia, according to a film manufacturer. Buyers reported receiving PE offers with $20-50/ton increases at $1220-1230/ton for HDPE film, $1290-1300/ton for LDPE film and at $1220-1250/ton for LLDPE c4 film, all on CIP Amman, 90 days basis.

“Supply seems to be sufficient from the producer whereas demand remains limited to the basic needs only. For this reason, we think that buyers might push for discounts on deals,” said a buyer.

A different buyer commented, “The new offers came in line with our expectations. Prices have increased by around $30-50/ton given the global firming trend. End-demand is moderate whereas supplies are sufficient. Still, we will wait for the rest of the suppliers to reveal their October offers before making any fresh purchases.”

In Algeria, a distributor also received PP and PE offers from the Saudi major with increases compared to the September levels. The major revealed its offers with increases of $20/ton for HDPE film, $30/ton for LLDPE c4 film, PP raffia and inj. and $50/ton for LDPE film.

Accordingly, PP prices are reported at $1230/ton for PP raffia and inj. while PE offers stand at $1250/ton for HDPE film, $1280/ton for LLDPE c4 film, $1260/ton for HDPE b/m and $1350/ton for LDPE film, all CIF Algeria, 90 days basis.

The distributor reported, “Market participants were surprised by the amount of increases as they were expecting relatively smaller hikes considering the slow state of demand.”