Saudi producer revises down November PP, PE to East Africa
“Given weak demand, the decreasing global trend and more than sufficient supplies, the producer revised down their prices further by $10-20/ton for homo PP and HDPE grades. However, the producer kept their LDPE and LLDPE film prices unchanged at the initial November levels given the higher prices, around $20/ton, present in the market from other Middle Eastern producers.”
The Saudi producer’s prices now stand at $1600/ton for HDPE film, blow moulding and injection, at $1600/ton for LDPE film, $1580/ton for LLDPE film, $1560/ton for PP film and $1530-1540/ton for PP raffia and film both on CFR Mombasa, Kenya and CFR Dar es Salam United Republic of Tanzania, 90 days deferred payment basis.
Meanwhile, other Middle Eastern offers were pegged at $1600/ton for LLDPE film and at $1620/ton for LDPE film with the same terms.
According to the trader, more decreases are expected in the upcoming days given the softening upstream costs. “Polymer prices have been increasing since the beginning of 2014 and now buyers are adamant about resisting high offer levels. On top of it, China is also softening which might result in Middle Eastern producers directing more cargoes to our region, Africa. An increasing number of incoming cargoes would cause offer levels to soften further,” he remarked.
A converter operating in Kenya also confirmed receiving lower prices from the Saudi producer and commented, “Middle Eastern producers are roughly offering at around the same levels while overall supply levels are comfortable inside the country. Although it is the peak season for some PP and PE applications, due to the bearish expectations, players are mostly sidelined from the market and sellers are competing to be able to conclude deals. We believe that deals will be achieved with further discounts given thin buying interest.”
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