Saudi major announces Oct PE, PP prices to Tunisia and Kenya

A plastic end product manufacturer operating in Tunisia reported receiving new October PP and PE offers from a Saudi major with rollovers to declines from September.

According to the converter the Saudi major’s October prices indicate decreases of €80/ton for LDPE film, €10-20/ton for LLDPE c4 film and HDPE film, €20/ton for HDPE pipe (PE 100) from September. Meanwhile, the producer rolled over or issued a €20/ton decrease on its new PP offers from September.

Currently, the producer’s PE offers are standing at €1130/ton for LDPE film, at €1110-1120/ton for LLDPE c4 film, at €1120-1130/ton for HDPE film, at €1140/ton for HDPE pipe (PE 100) and at €1170/ton for HDPE injection, all on a CIF Tunisia, 90 days deferred payment basis. The major’s new PP offers, meanwhile, were reported at t €930-950/ton for PP homo raffia and injection with the same terms.

"Market activities are still faltering and demand remains muted. In addition, exchanges rates are quite high. Middle Eastern suppliers have softened their offers due to the existence of lower offers in the import market. We also achieved €20-30/ton decreases from European suppliers. Supply levels are fine for all grades nowadays,” commented the converter.

Another plastic end manufacturer in Kenya reported that the Saudi major issued rollovers for PP and $10/ton decreases for its PE prices for October. Accordingly, the producer’s new offers to Kenya are reported at $1210/ton for HDPE film, LDPE film and LLDPE c4 film, at $1230/ton for HDPE blow moulding and at $1040/ton for homo PP raffia and injection, all on a CFR Mombasa, Kenya, 90 days deferred payment basis. The converter complained about weak market conditions and poor demand.

A trader also reported that the producer is offering at $1080/ton for homo PP film with the same terms. “Demand is quite slow now due to thin buying interest given the end of the year. We expect the market to remain on a slow note for the rest of this year,” opined the trader.