Saudi major issues PP, PE prices for Sept to Turkey

Initial September PP and PE prices from the Middle East started to emerge with increases in Turkey, as already expected just before the extended Eid holiday.

A Saudi Arabian major announced its new offers at $1200/ton for homo PP raffia and $1220-1230/ton for PP fibre, both CIF Turkey, subject to 6.5% customs duty, cash basis. These levels represented increases of $90-100/ton from August deals concluded for Saudi origins.

Converters also reported receiving new PE prices from the major at $1230-1250/ton for LLDPE c4 film and $1190-1200/ton for HDPE film, FCA Turkey, subject to 6.5% customs duty, cash. The producer’s most recent offers were up by $50-70/ton and $40-50/ton, respectively from August. “We were told by the supplier that these levels may be revised further up next week,” said a buyer.

The bullish polymer markets in China and Europe supported the sentiment for both products. Supply woes in the US amidst severe output disruptions following Hurricane Harvey pushed costs up on a global scale and supported Mid-Eastern sellers as well. More PP and PE sellers from the Middle East are expected to approach the market with increases next week.