Saudi major issues Jan PP, PE prices to S. Arabia and Egypt
In Egypt, the producer issued very large decreases, with up to three digit drops, both for PP and PE. When comparing the producer’s new offers with their initial December levels, their prices indicate $80/ton drops for HDPE film and injection, $60/ton decreases for HDPE b/m, $100/ton decreases for LLDPE and LDPE film, $130-140/ton cuts for homo-PP, $150/ton decreases for PPBC injection and $150/ton drops for PPRC injection.
However, within the month of December, the producer had to concede to discounts from their initial levels in Egypt, where demand was slow and players were struggling with cash flow issues. Therefore, the producer’s new January levels indicate smaller decreases when compared to their late December levels. For example, their LDPE and LLDPE film prices indicate $30/ton drops while PP raffia and injection prices represent $80/ton decreases from their late December levels.
The producer’s January prices stand at $1290/ton for HDPE film and PPRC (Type 3), at $1340/ton for HDPE b/m and injection, $1270/ton for LDPE and LLDPE film, $1070/ton for PP raffia and injection, $1100/ton for PP film and injection, $1150/ton for PPBC injection and $1230/ton for PPRC injection on CIF Alexandria, Egypt, 90 days deferred payment basis.
A distributor operating in Egypt stated, “Now that a major Saudi producer revealed their new prices for January, the market is waiting to hear other regional producers’ offers, which are expected to be announced with similar decreases. Meanwhile, local market levels continue to fall amidst thin demand. For HDPE, we are delaying our purchases as we anticipate lower prices from the local HDPE producer SIDPEC.”
An Egyptian converter also reported, “A major Saudi producer’s offers indicate up to $100/ton decreases for PE and $130-150/ton decreases for PP. However, as the month proceeds, we anticipate even lower levels as we do not think that market sentiment will pick up in January. Prices keep going south due to weak demand and we are currently adopting a wait-and-see stance.”
Meanwhile, in their own local market, Saudi Arabia, the producer also issued decreases for January. The producer lowered their prices by SAR150-188/ton ($40-80/ton) for PE, by SAR263/ton ($70/ton) for PP, and by SAR112/ton ($30/ton) for GPPS and HIPS.
Price wise, the producer offers HDPE film at SAR4013/ton ($1070/ton), HDPE b/m at SAR4125/ton ($1099/ton), HDPE injection at SAR4200/ton ($1119/ton), LDPE film at SAR4163/ton ($1110/ton), LLDPE c4 film at SAR4050/ton ($1079/ton), PP raffia and injection at SAR3375/ton ($900/ton), GPPS injection at SAR4238/ton ($1130/ton) and HIPS injection at SAR4538/ton ($1210/ton) on an FD Jeddah, Saudi Arabia, cash basis.
A trader operating in Jeddah reported, “The market state signals an even more bearish trend for January since that a major producer issued very noticeable decreases on their January offers. Because other sellers generally offer at a discount when compared to this producer’s offers, their large decreases are likely to apply further pressure to prices and harm our margins even more.”
A Saudi converter added, “Supplies have been good in the market even in the absence of one of the local producers, who shut their plant for maintenance in October. The producer is set to restart their plant in mid-January.”
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