Mid-East PP markets show weaker performance than PE in August; Saudi PP hits all-time lows

PP markets in the Middle East underperformed PE in August, with PP facing steeper declines and sharper sentiment deterioration. After a brief recovery last month, sellers’ attempts to hold prices at July levels quickly faltered under firm buyer resistance, particularly in PP, where the absence of meaningful demand drivers left producers with little leverage. While PE mostly hovered around last month’s levels with only minor adjustments, PP endured more pronounced downward revisions, including record-low pricing in Saudi Arabia’s PPH segment since market tracking began.

Saudi Arabia: PE steadies but PP slides to record lows

In Saudi Arabia, most PE grades posted rollovers from July, with HDPE blow moulding as the sole exception, registering a modest month-on-month increase that erased the prior month’s loss. Limited availability in select grades and slow derivative demand kept PE largely stable.

By contrast, PP reversed July’s small gains, with PPH raffia and injection posting moderate decreases that pushed prices to their lowest since 2008. Converters’ high stock levels and restrained purchasing activity left sellers with no choice but to accept lower deals to conclude business.

United Arab Emirates: PP sees greater concessions than PE

The UAE’s PE market began August on a stable note, but sluggish buying interest and subdued activity led to slight-to-moderate discounts as the month progressed, especially in LLDPE and LDPE film.

PP saw even deeper cuts, with PPH raffia and injection slipping more noticeably from July as suppliers met firm bids with greater concessions. The reappearance of Omani cargoes—absent last month—further pressured the low end of the PP range, amplifying the month-on-month declines.

East Mediterranean: PP follows softer trajectory than PE

In the East Mediterranean, PE offers largely tracked rollovers to small declines after July’s stability, with LDPE film and HDPE injection in Jordan showing moderate decreases. PP fared worse, with PPH raffia and injection recording steeper drops in Jordan, while Lebanon’s market held steady on paper but still allowed for minor discounts to close deals. Economic and political challenges across the region continued to weigh more heavily on PP than PE, deepening the disparity in performance between the two markets.

Outlook: No quick recovery in sight

Looking ahead, both PP and PE markets in the Middle East are expected to remain under pressure in the short term. Demand shows little sign of improvement, while economic and geopolitical challenges continue to cloud the trading environment. Players note that any potential rebound will likely hinge on stronger feedstock costs, improved global market sentiment, or shifts in trade flows that could rebalance supply-demand dynamics across the region.

Given weaker fundamentals and heightened supply-side competition, PP may stay under greater pressure than PE, which may continue to benefit from relatively tighter availability in certain grades.