Saudi major seeks hikes for November in global PE, PP markets
The major producer’s local PE offers were firmer by SAR40-188/ton and new offers for PPH were likewise higher by SAR88-225/ton ($25-60/ton) over their previous levels. Players in the Saudi market reported that the amount of hikes took some by surprise as demand was still deemed moderate-to-weak.
The major’s new PE offers for Turkey suggested increases of around $50/ton hikes while PPH offers were higher by around $40/ton over their previous levels in October. However, the increased offers drew a lacklustre response from buyers. Reports of players facing issues in re-exporting Saudi cargoes, as well as a dumping probe initiated on Saudi LDPE last month were all cited as factors diminishing buying interest in Turkey.
In China, an agent of the major Saudi producer reported that their supplier announced $20-80/ton increases for PE and $50/ton increases for PPH. However, some players speculated that prices have peaked and that buyers are purchasing only to meet basic requirements. “With the high season coming to an end, we do not expect to see strong demand in the near term,” a player commented.
The major Saudi producer announced increases ranging from $50/ton to $100/ton for PE grades in Egypt, while also increasing PP offers by around $30-40/ton over October. Views regarding demand were mixed in the Egyptian markets, with some reporting moderate-to-weak interest. Others argued that pockets of tightness remained for certain grades, keeping the sentiment firm.
The two reference markets for the East Mediteranean region, Jordan and Lebanon also saw increases from the major Saudi producer. PE offers were higher by around $20-80/ton on average while PP offers were $30-50/ton higher from October. However, demand remained tepid across the markets, largely as a result of a second wave of COVID-19 restrictions and a weak macroeconomic environment.
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