Saudi major reveals PP, PE prices to Africa, Mid-East
Starting with its own local market, the producer reduced its June PE offers by an equivalence of $20/ton, although PP prices indicated rollovers to an increase equivalent of $10/ton. “We were surprised by this divergence in the producer’s pricing strategy, particularly when considering the larger size of decreases the producer issued for PP to other markets, ” said a trader operating in Saudi Arabia.
Players in United Arab Emirates also reported receiving initial June offers from the Saudi major in the import market with decreases of $20-30/ton for PE and $50/ton for PP when compared to their May levels. “These announcements came as no surprise. Supplies are comfortable while demand is sluggish given the approaching Ramadan as well as the globally weak trend,” a regional distributor commented.
The same producer followed a similar pricing strategy in African markets. According to players in Egypt, initial prices from a major Saudi producer indicate decreases of $20-50/ton for PP and $20/ton for PE this week. Traders and distributors in Egypt concur about the visible slowdown of demand ahead of Ramadan as many players have been sidelined from the market recently.
“We have not decided yet as to whether or not we make fresh purchases from the import market as we already have some stocks. We may decide on our next step once other Middle Eastern suppliers also reveal their June prices,” said a converter in Egypt.
In East Africa, Kenyan buyers reported receiving June offers from the Saudi major with rollovers for PE while the decrease size of PP was much larger at $60/ton on a monthly basis. A regional buyer said, “The persistent heavy rainy season has weighed down on demand and hampered the business activities while supplies are comfortable. Accordingly, PP and PE prices are on the weak side.”
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