Saudi producer’s July PP, PE prices surprise Egyptian players
Prior to their July announcements, some players were reported to have achieved up to $20/ton discounts on their June PP and PE deals from the producer. When considering their latest done deal levels, the producer’s new July offers represent even higher increase amounts of up to $30/ton.
A trader commented, “We received $10/ton firmer prices from a major Saudi Arabian producer while players were mostly expecting rollovers to decreases. We think that the producer is aiming to preserve their June levels without conceding to further decreases in July and that is why they followed such a pricing policy. However, we believe that the increasing trend has come to its end and if the gap between this producer’s prices and the rest of the Middle Eastern producers’ offers turns out to be very large, they will have to step back from their prices.”
The Saudi producer’s new prices stand at $1580/ton for PP film, PP fibre, HDPE film and LLDPE film, $1590/ton for HDPE b/m, $1600/ton for LDPE film and HDPE injection, $1540/ton for PP raffia and injection, $1570-1580/ton for PPBC injection and at $1700/ton for PPRC injection on CIF Suez, 90 days deferred payment basis.
In contrast to initial offers to Egypt, Middle Eastern prices started to be announced in other global markets with decreases from June levels. A Middle Eastern producer issued decreases for July PE to Turkey at the beginning of the week and they brought down their LDPE film prices by $10/ton, their LLDPE film prices by $60-70/ton and their HDPE film by $50/ton from their June levels. Later in the week, the same producer made another downward adjustment by issuing further decreases of $10-20/ton on their new July offers.
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