Saudi major approaches global PE markets with tightness-driven hikes
In China, the producer raised its prices by $30/ton for HDPE, LLDPE and by $50/ton for LDPE film when compared to February. “The major’s HDPE film supplies are likely to be tight in the remaining part of the year as they focus more on HDPE pipe production. Demand for HDPE is likely to remain good while it is projected to be slow for LDPE and LLDPE given the end of the agricultural season in April,” an agent of the major said. The softening in China’s domestic PE market has not have a visible impact on imports so far, whereas many cargoes are expected to arrive in China following the holidays which might exert some pressure on prices.
Converters in Turkey received new offers from the Saudi supplier with increases of $30/ton for LLDPE and $50/ton for HDPE from February levels. “The producer does not have prompt material in the southern region for the moment. Their supply levels are not likely to ease until April. We were able to procure only 50 tons of HDPE from the source for March,” a manufacturer reported. Another buyer, meanwhile, thinks that the supplier may have to step back from its initial LLDPE offers later considering slower demand for this product compared to HDPE film.
In Egypt, the major’s PE offers indicated increases of $160/ton for HDPE pipe and $50/ton for HDPE film, inj. and b/m; while they were up by $20/ton for LLDPE and LDPE film month over month. A player commented, “Although we were expecting some hikes given tight supplies across the region, we found the major’s latest prices unreasonably high. We expect the producer to concede to lower levels, as was the case in February.”
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