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Saudi major opts for firm Oct pricing in both local and export polyolefin markets

by Başak Ceylan - bceylan@chemorbis.com
  • 06/10/2021 (03:06)
A major Saudi Arabian producer kicked off October on a firm footing, with the recently announced PP and PE offers indicating mostly rollovers to increases in global polyolefin markets. The tightening in prompt availability over the course of September and bullish sentiment in most global markets supported the major producer’s pricing policy for October.

Domestic market sees rollovers to increases

The major producer’s October offers in the Saudi local market were announced with rollovers to increases ranging between SAR187/ton ($50/ton) to SAR412/ton ($110/ton) over last month. This pricing strategy was in line with expectations as most players had predicted similar levels, largely due to the tightness in supplies and the bullish global sentiment.

Jordan, Lebanon markets up on availability

The Saudi major’s new offers were also higher across the Middle Eastern markets. In Lebanon, the producer’s new PE offers were up by $40-80/ton while PPBC inj. offers jumped $90-100/ton over last month. The availability was brought into question as the major producer did not offer PPH to Lebanon for October.

The latest offers in Lebanon were at $1400-1410/ton for LLDPE C4 film, $1450-1460/ton HDPE film and HDPE b/m, $1440-1450/ton for HDPE inj., $1600-1610/ton for LDPE film, and $1680-1690/ton for PPBC inj., CIF Beirut.

In Jordan, LLDPE C4 film and HDPE film offers for October from the major Saudi producer increased by $30-50/ton over last month while LDPE film offers rolled over. The producer’s new offers for PPH grades were up by around $80/ton month-on-month while there was no availability for PPBC inj. in Jordan.

Accordingly, October levels in Jordan were at $1580/ton for LDPE film, $1410/ton for LLDPE C4 film, $1430/ton for all HDPE grades, $1570/ton for PPH inj. and raffia, $1600/ton for PPH film and fibre, and $1680-1690/ton for PPBC inj., CIF Aqaba.

Offers surge beyond expectations in Egypt

Meanwhile, the major Saudi producer’s new offers in Egypt took players by surprise as the amount of increases was beyond what most of them predicted.

For October, the major producer’s HDPE film and HDPE inj. offers increased significantly by $140/ton while LLDPE C4 film and LDPE film surged by $230-240/ton over last month. The major producer’s PPH raffia and inj. offers were likewise higher by $240/ton while PPH film and fibre offers jumped by $200/ton. PPBC and PPRC inj. prices indicated increases of around $170-180/ton over September.

Producer returns to Nigeria with high levels

In September, the major Saudi producer skipped its usual shipments to Nigeria, citing their supply and logistics problems, and only offers from the Indian and South Korean producers were available. However, new PP and PE offers from the major producer were announced this week, with levels indicating a continued rise compared to the previous levels.

The latest import offers in Nigeria were at $1750-1760/ton for PPH raffia and inj., $1780-1790/ton for PPH film and fibre, $1850-1870/ton for PPBC inj., $1620/ton for PPRC inj., $1800-1820/ton for LDPE film, $1480-1490/ton for LLDPE C4 film, $1520-1530/ton for HDPE film, $1500-1510/ton for HDPE b/m, $1470-1490/ton for HDPE inj., all on CFR Lagos, excluding 10% CD basis.

October PP, PE offers largely firmer in China

Over in the Asian markets, an agent of the major Saudi producer reported that the producer raised October PE and PP offers to China, except for HDPE film, largely due to weaker demand for the particular product.

The major producer’s offers to Chinese markets were higher by $150/ton for LDPE and by $60/ton for LLDPE and PPH raffia. The major producer’s allocation for October was reported to have been sufficient.
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