Saudi suppliers’ Feb PP, PE offers meet forecast in Mid-East, Africa
In the United Arab Emirates, a Saudi major issued their new February offers with increases up to $80/ton for PE and $50/ton for homo PP compared with its January prices. According to market players, the major’s new PP and PE offers are quoted at $1100-1110/ton for PP raffia and injection, at $1280/ton for LLDPE c4 film, at $1210/ton for HDPE film, at $1260-1320/ton for LDPE film, all on CIF Dubai, 90 days.
“February offers came firmer in line with our expectations as supplies are limited. In addition, the local producer’s PP allocation is also limited and the producer prefers to deliver to their regular customers. Demand is moderate in the market and we expect some lower deals to surface in the upcoming days for the large volume purchases,” commented a trader.
In Jordan, the Saudi supplier’s new PE offers were reported $20-80/ton higher from January while its PP offers indicated an increase of $50/ton from the previous month. According to a converter, the producer’s new PP and PE offers are standing at $1150/ton for raffia and injection, at $1220/ton for HDPE film, at $1350/ton for LDPE film and at $1280/ton for LLDPE film, all on CIP Amman, 90 days.
The converter commented that the producer’s supply will be limited this month which is expected to keep prices firm in the days ahead.
Looking at the import markets in Africa, new prices followed suit. In Tunisia, according to a plastic end manufacturer, a major Saudi Arabian producer’s new offers stand at €1280/ton CIF Tunisia, 90 days for LDPE, at €1190/ton for LLDPE, at €1170-1180/ton for HDPE film, at €1190/ton for HDPE inj., at €1230/ton for HDPE pipe and at €1090/ton for PP raffia and injection, up €30-80/ton from January.
In Kenya, the Saudi major maintained their homo PP offers at January’s levels for February while implemented increases between $10-60/ton on its new PE offers to the country. Meanwhile, another Saudi producer also applied hikes between $10-40/ton on its new PE offers to the country.
According to a manufacturer’s reports, the suppliers’ offers stand at $1270/ton for LLDPE c4 film, at $1320-1330/ton for LDPE film, at $1240-1250/ton for HDPE film, 1220-1230/ton for b/m, at $1220/ton for injection and at $1050/ton for PP raffia and injection, all on CFR Mombasa, 90 days.
The converter commented, “Demand has started to improve since the past week as some buyers started to make some fresh purchases given the slightly improving demand on their end business. Supplies are balanced with demand in the market, however once demand improves further, supply tightness will be noticeable.”Another converter also said that the new price increases have been accepted from the market players.
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