Saudi major reveals March PP, PE offers to local market

In Saudi Arabia, a major local producer announced its fresh March PP and PE offers to the market with slight changes as compared to February price list, marking the second consecutive month of minor price changes amid restrained supplies and weak derivative demand, as players put it.

Accordingly, the producer’s new PE offers indicate SAR37-38/ton ($10/ton) increases compared to February whereas PP prices are SAR26-36/ton ($7-10/ton) up on a monthly comparison.

According to a local source, restrained supplies from the producer continued to support March prices despite dwindling demand. “Ramadan lull is expected to hammer resin demand during March yet, supply hiccups are likely to give sellers a leverage to preserve their current levels,” a manufacturer stated.

The new offers are as follows (all on FD Jeddah, cash excluding VAT basis):

HDPE film: SAR4050/ton ($1080/ton)

HDPE blow: SAR4238/ton ($1130/ton)

LDPE film: SAR4650/ton ($1240/ton)

HDPE inj.: SAR4125/ton ($1100/ton)

LLDPE film: SAR4013/ton ($1070/ton)

Homo-PP raffia and inj.: SAR3375/ton ($900/ton)