Saudi major’s July PE pricing differs in China, Egypt
In China, an agent of the major Saudi producer reported that their supplier cut its July PE offers to the country by $30/ton for LDPE and LLDPE film while a relatively larger decrease of $50/ton was applied for HDPE film offers on a monthly basis.
The agent commented, “The major producer cut its July PE offers since Chinese buyers’ demand towards import cargoes has been weaker given the depreciating yuan against the US dollar amid the escalating trade war with the US. Plus, we are still in the off-season for PE applications.”
As for Egypt, players reported that the major producer elected to keep its July PE offers unchanged from June after keeping their offers on a stable to softer note for the past two months. The major’s stable offers were mainly attributed to lackluster trading activity in the country.
“July PE prices from the major producer surfaced with rollovers in line with our initial expectations based on slow market activities amid firm costs and tight cash-flow. We expect other Middle Eastern producers to follow the major’s pricing and approach Egypt with stable offers for July,” they noted.
In the meantime, the major Saudi producer announced its July PE offers to its local market also with rollovers from June as was mostly expected by market players.
“Local demand is good on the back of the approaching Hajj season while supplies are relatively limited due to a plant shutdown in the region,” a trader noted.
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