Saudi major reveals October PP, PE prices to Africa, Mid-East
After revealing its prices to its own local market on a stable to soft note for both products, the producer approached the Turkish market with rollovers for PE and slight discounts for PP. Turkish PP buyers are generally expecting to obtain further discounts from the producer given the discouraging demand and lack of supply issues while a few PE buyers argued, “Sellers are asking for rollovers to avoid larger discounts pointing to their limited availability.”
The producer’s new levels to the United Arab Emirates indicate rollovers as well. HDPE film was an exception as the producer cut its offers for this grade by $50/ton on the month. Players in the country attributed this to the fact that a domestic producer provided very competitive offers for HDPE film. A distributor in Dubai said, “The Saudi major is open to negotiation given the poor buying interest and their excess supplies.”
Apart from the Middle East, the African markets have witnessed a similar pricing strategy from the producer. Its new October PP and PE offers to Egypt indicate rollovers. Players are waiting to see if other producers will follow suit.
Kenyan players also received PP offers from the Saudi major with rollovers and PE offers with $10/ton decreases when compared to last month. “Buyers do not rush to accept new levels as overall demand remains unsatisfactory in the region,” said a trader.
In Tunisia, the producer’s new PP offers were revealed with rollovers and €20/ton decreases while PE offers indicate decreases of €80/ton for LDPE film, €10-20/ton for LLDPE c4 film and HDPE film and €20/ton for HDPE pipe. “Middle Eastern suppliers have softened their offers due to the existence of lower offers in the import market. Supply levels are sufficient in general,” a buyer commented.
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