Saudi major issues May PP, PE prices to Mid-East, Africa
The producer revealed its prices to its own local market on a stable note for PP and PE, except for HDPE blow moulding and PPBC injection which were down by SAR150/ton ($40/ton) and SAR37/ton ($10/ton) from April, respectively. “Demand is quite slow and the number of inquiries we receive is limited,” a trader said.
The major’s initial offers reported in the Middle East indicate decreases as well. In Jordan, a plastic end product manufacturer informed that the producer lowered its prices by $20/ton for homo-PP injection and raffia, by $30/ton for HDPE film, by $50/ton for LLDPE c4 film and by $60/ton for LDPE film when compared to April. “Supplies are sufficient while demand is still stagnant in the face of slow end business coupled with thin export activities. We think demand will slow further down in line with the approaching month of Ramadan,” the converter stated.
In African markets, the Saudi major’s new May prices for PP and PE to Egypt were announced with rollovers from their April levels as was anticipated by players due to weaker crude oil prices. However, Egyptian players expressed that they expect Saudi major to concede lower done deal levels due to weak market conditions.
A trader receiving these new levels from the Saudi major, commented, “Lower done deal levels must be achievable considering poor market conditions.” A manufacturer also opined, “PP and PE prices are still high. Although demand has started to recover recently, it is still below average and for this reason; we expect to see discounts on deals.”
In Algeria, a trader also received May offers from the Saudi major with rollovers from the previous month. “Offers remained more or less steady this month. Demand, on the other hand, is stumbling,” the trader noted.
However, in Tunisia, a trader reported that the Saudi major cut its offers by €10/ton for PP block copolymer, by €20/ton for LLDPE c4 film and by €40/ton for LDPE film while keeping its offers for homo-PP raffia and injection and HDPE film unchanged from April levels. He said, “The Saudi major’s stable to softer May offers came in line with our initial expectations. Demand towards our end product is weak and the market activity is slow.”
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