Saudi major reveals October PP, PE offers to Mid-East, Africa
In Saudi Arabia, players reported receiving domestic offers from the major producer for October with increases of $40/ton for homo PP, $30/ton for LDPE, LLDPE film and HDPE film. The producer applied larger increases of $70/ton and $90/ton respectively on HDPE injection and b/m grades. This has been the first increase after 5 months of stable to softer prices.
In one of the Saudi major’s main export destinations, Turkey, the Saudi Arabian major revealed hikes of $10-30/ton for LLDPE and $40-60/ton for HDPE for October. A buyer commented, “We were not surprised by the price hikes as high ethylene costs continue to be a pressure point. Plus, other global markets are still offering better netbacks.”
Hike attempts were visible in other Middle Eastern markets, too. In the United Arab Emirates, the Saudi major approached the market with $20-30/ton hikes for both PP and PE. Players are waiting to hear other regional producers’ offers before they start to make purchases.
In Jordan, the producer’s PP offers indicate large increases of $60/ton while October PE prices surface with $20-50/ton increases from September. “Supply is deemed as sufficient from the producer whereas demand remains limited to the basic needs. Therefore, buyers might push for discounts on deals,” said a buyer.
Similarly, the Saudi major’s October pricing in African markets indicate increases in line with the earlier expectations.
In Egypt, the major’s new levels are higher for October compared to their latest done deal levels. A player commented, “The producer will remain adamant at their levels. However, local demand remains quiet amidst cash flow problems and higher production costs.”
In Algeria, meanwhile, players were surprised by Saudi major’s October increases as the producer revealed its offers with increases of $20/ton for HDPE film, $30/ton for LLDPE c4 film, PP raffia and inj. and $50/ton for LDPE film. Players were expecting smaller increases due to sluggish demand.
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