Rally falters across Mid-East PP, PE markets in March

Players in the Middle Eastern PP and PE markets have received March offers from regional sellers with rollovers to some increases compared to the latest February levels. Indeed, the annual turnaround season in Q1 and partly extending into Q2 has continued to support price hike targets across the region; nevertheless, the pace of increases appears to have lost some momentum, as tepid derivative markets loomed large, resulting in discounts in deals.

Saudi PP, PE markets up for 2nd month

In Saudi Arabia, March PE offers from a major local producer indicated SAR37-38/ton($10/ton) increases from February, marking the second straight month of price hike requests. Accordingly, HDPE and LLDPE film reached their highest levels since October 2024 whereas LDPE film is currently at its highest level since April 2023, as ChemOrbis Price Index reveals.

Similarly, the major’s PP offers were marginally up by SAR26/ton($7/ton) from a month earlier. According to players, the producer continued to adjust up its offers – albeit in minimal amounts given restrained supplies. “Tepid demand continued to weigh on the market sentiment and kept the amount of increases limited,” a manufacturer opined.

Meanwhile, ChemOrbis Supply Wizard reveals that Kayan, NATPET and Yansab all finished their PP planned turnarounds in February while there are no other PP shutdowns reported in the market. In the PE market, Saudi Kayan, SEPC and Yansab returned from their annual turnarounds while Sadara Chemical plans to shut down its cracker in March for approximately 30 to 45 days, though it remains uncertain whether this will be followed by downstream turnarounds.

Additionally, Saudi Petro-Rabigh is preparing for a three-month shutdown of its cracker and four PE units starting in April, leading to a significant production shortfall for the country.

Omani cargoes drag CIF UAE low ends down

In the United Arab Emirates, a major Saudi supplier revealed its new March PP and PE offers largely with rollovers from a month earlier following the $40-60/ton and $30-70/ton respective increases announced for February. According to market sources, thin buying enthusiasm and the emergence of competitive Omani cargoes dragged low ends lower and induced sellers to issue slight discounts on deals.

Mounting resistance outweighs hike targets in UAE spot market

On a related note, local PP prices first emerged with rollovers to slight increases from the latest February prices; however, discounts of $10/ton were reportedly achieved on deals on the low end for PPH raffia and injection and on both ends for PPBC injection. “Slight hike targets were tested in the local market, but they failed to turn into deals amidst lukewarm demand,” players said.

Meanwhile, UAE’s Borouge is preparing for a maintenance shutdown at its No 3 cracker, along with three PE plants and two PP plants under the Borouge 3 project in April, according to ChemOrbis Supply Wizard.

East Med markets shrug off supply concerns, ebbing demand permeates

In the East Mediterranean region, sellers approached the PP and PE markets in Jordan and Lebanon with rollovers targets from February. Indeed, multiple sellers voiced their plans to maintain their latest February levels citing supply hiccups from the bloc; nevertheless, buyers’ resistance and thin activities given the Ramadan lull resulted in $10-20/ton lower deals in Jordan.

“Discounts could be achieved for serious bids yet, the market lacks real recovery incentives amidst unfavorable economic and political conditions,” a market source in Lebanon illustrated.

Will PP, PE markets extend gains into April?

Following a stable January and mostly bearish Q4, PP and PE markets have been buoyed by the turnround season. Over the near term, players across the region expect no major price changes until the end of March.

However, most of the turnarounds have ended except for Saudi PetroRabigh and UAE’s Borouge. Given the nearing end of the turnaround season as well as the approaching Ramadan festivities in Muslim countries, PP and PE prices are likely to see minor changes - more on the softer side - for April.