Sellers take firmer stance in Sept PP, PE offers in Mid-East, Africa
Although a Saudi major announced September offers to its own local market with rollovers to slight decreases, the producer appears to have adopted a firm pricing policy for September in its export destinations including Africa and the Middle East.
In Kenya, a converter reported receiving new offers from the Saudi major with $60-70/ton increases for PP and $20/ton for LDPE film. Another Saudi producer applied increases of up to $40/ton on PE while rolling over PP offers from August. However, converters are taking a cautious stance in Kenya due to the uncertainty regarding the ban of plastic bags.
In Nigeria, the Saudi major issued raised LLDPE and HDPE film offers by $10/ton and PP raffia and injection offers by $40/ton from August. The local producer, ELEME, also applied increases on homo PP and rolled over PE.
In Egypt, a Saudi major announced September PP, PE offers with rollovers from its latest done deal levels in August. However, two different producers from Saudi Arabia elected to raise their offers for September to Egypt. One of them lifted its PP, PE offers by $40/ton while the other raised by a smaller amount of $10-20/ton on the month. An agent of a producer commented, “These increases didn’t come as a surprise given the uptrend in global polyolefin markets and firming upstream costs despite slow market conditions in Egypt.”
In Algeria, the Saudi major’s PP and PE offers for September also indicate increases of up to $50/ton from the deal levels reported in August.
Similar hike attempts for import offers are also visible in the Middle Eastern markets, although the local markets in Saudi Arabia and United Arab Emirates have been stable to soft for another month. The PP market is generally considered relatively stronger than PE.
In Jordan, a buyer received $40/ton higher PP offers from the Saudi major. Despite the producer’s hike targets, the buyer says, “We expect discounts on deals due to discouraging demand.”
In Lebanon, a buyer reported receiving $25/ton higher PE offers from a Qatari source for September, commenting, “We are surprised by the September increases as we were expecting a stable to softer trend given thin demand.”
The global firming trend in the PP and PE markets and higher monomer prices are cited as the main reasons behind the firm stance some regional and overseas sellers have taken recently, as was already anticipated Will Africa’s PE markets remain soft in September?.
More free plastics newsPlastic resin (PP, LDPE, LLDPE ,HDPE, PVC, GPS; HIPS, PET, ABS) prices, polymer market trends, and more...
- Muted demand in Europe paves way for plenty of PP, PE offers in Turkey
- Import PE uptrend persists in China despite bearish winds mounting in local market
- 3-digit hikes in Oct PVC offers reinforce supply-driven bullishness in Asia
- Crude oil caught between demand woes and production disruption
- Tightness drives European PVC market up, prices near pre-pandemic levels
- Major LDPE markets touch multi-year highs on growing tightness
- A prospect for Q4 through uncharted waters of 2020 amid pandemic
- China's import PP markets maintain uptrend under shadow of oil-driven losses in Dalian futures
- Weaker domestic demand prompts Vietnam to export polymers
- European PP market ceases upward trend in September