Saudi major issues drops for January in global PE markets
China’s import PE market sees the 8th month of drops in a row
Import PE prices in China were on a prolonged bearish trend since the second half of 2018 as the trade war between the US and China kept demand for import cargos mild. Lower crude oil futures and spot ethylene prices in Asia also contributed to buyers’ “wait and see” stance.
Price cuts from Saudi major were relatively modest in China
The Saudi major cut its new offers by $30/ton for HDPE film and $20-30/ton for LDPE film while rolling over its LLDPE film prices from December.
An agent offering on the behalf of the producer noted, “Traders and converters are willing to build up some stocks in order to cover their post-holiday needs. Thus, inventories are low inside China. However, the market will soon become quiet in line with the start of the Chinese New Year holiday at the end of the month.”
Producer also issued small cuts to Turkey
Buyers in Turkey received new PE prices from a Saudi Arabian major early this week, while they indicated decreases of $20/ton for LLDPE C4 film and $30/ton for HDPE film month over month.
“We were told that the supplier does not have much LLDPE allocation this month,” noted a packager. Overall activity was tied to basic needs as most buyers just started to make their inquiries. Players pointed to the impact of charges on shopping bags which weighed on HDPE film demand, in the meantime.
Saudi major conceded to notable drops in Egypt
In Egypt, the Saudi major concluded its January deals with substantial decreases after initially seeking rollovers for the month. Accordingly, the producer’s January deals indicated declines of $120/ton for LDPE film, $100/ton for LLDPE c4 film, $80/ton for HDPE b/m and inj., and $40/ton for HDPE film when compared to its initial offers and December.
Monthly decreases were recorded in Jordan, Algeria, Saudi Arabia, too
Players also reported monthly price declines of $20-70/ton from the producer in Jordan and $50/ton in Algeria.
In its own local market, the producer sought decreases of up to SAR70/ton ($18/ton) for PE.
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