Saudi producers announce March PP, PE to their local market
A major local producer elected to issue SAR37-38/ton ($10/ton) increases on their homo PP offers and SAR75/ton ($20/ton) increases on their PE, PPBC injection and PVC k67-68 prices. Meanwhile, the producer lifted their PS prices by SAR150-188/ton ($40-50/ton) and their PET prices by SAR109/ton ($29/ton) for March.
Looking at the overall offer levels given by this producer, PP raffia and injection are at SAR3300/ton ($880/ton), PP film and fibre at SAR3413/ton ($910/ton), PPBC and PPRC injection at SAR3975/ton ($1060/ton) and PPRC injection (Type 3) at SAR4313/ton ($1150/ton) on an FD Jeddah, Saudi Arabia, cash basis.
Meanwhile, the producer offers HDPE film at SAR4088/ton ($1090/ton), HDPE b/m and LDPE film at SAR4200/ton ($1120/ton), HDPE injection at SAR4275/ton ($1140/ton), LLDPE c4 film at SAR4125/ton ($1100/ton), PVC k67-68 at SAR3075/ton ($820/ton), GPPS at SAR4388/ton ($1170/ton), HIPS at SAR4688/ton ($1250/ton) and PET bottle at SAR3364/ton ($897/ton) with the same terms.
A converter operating in Jeddah commented, “Increases are being justified by limited availability. We see restricted supplies for both PP and PE not only in our own local market but also in other global markets such as Turkey. However, we believe that suppliers are deliberately limiting their deliveries in order to support their March levels.”
Another converter also said, “Demand has been gradually improving since late February while we feel no obvious supply restrictions in the market. Given the approaching high season, we anticipate demand to continue to improve.”
Meanwhile, another local Saudi producer followed a divergent pricing policy on their March offers. Despite the fact that they have just got out of a maintenance shutdown, the producer elected to lower their PP raffia and injection prices by SAR161/ton ($43/ton) to SAR3182/ton ($848/ton) while they cut their PPBC injection offers by SAR88/ton ($23/ton) to SAR3525/ton ($940/ton) on an FD Jeddah, cash basis. The producer, on the other hand, rolled over their HDPE blow moulding offers at SAR4087/ton ($1090/ton) and issued slight increases of SAR43-45/ton ($11-12/ton) on their HDPE film and injection offers at SAR4087/ton ($1090/ton) and at SAR4012/ton ($1070/ton), respectively.
A trader who received these offers from the latter producer stated, “The reason behind the PP drops is that demand for PP is rather slow and supplies are available. However, for PE, demand is performing relatively better. Therefore, the producer, in line with the globally firming trend, lifted their prices. Nevertheless, their prices are still more competitive than other local producers’ PP and PE offers.”
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