The downtrend of PP, PE Middle East market continues in July
Last week, July price announcements started rolling out in the Middle East with most sellers announcing price cuts, mainly due to persistently weak demand and activity. Supply was largely reported to be ample while some regional markets reported mixed conditions.
Saudi Arabia's market dropped markedly in July
In Saudi Arabia, a major domestic producer announced price reductions ranging from SAR 150/ton ($40/ton) to SAR 562/ton ($150/ton) for PE grades while reporting. PPH price decreased by 375 SAR/ton ($100/ton) compared to June.
This is the third month in a row that this manufacturer has reduced PP prices and is the second month to reduce prices of PE grades.
Most of this major manufacturer's price announcements are in line with forecasts. Market participants anticipate other vendors to adopt the same strategy as this major manufacturer, as this is often the company that sets trends and sentiment in the market.
Import prices unchanged or reduced in UAE
In the United Arab Emirates, new quotes on the domestic market are down by about $30-50/ton LLDPE C4 film, $130/ton HDPE inj., and $300-330/ton LDPE film. Quote PPH raffia and inj. The domestic market also decreased by 100 USD/ton compared to the previous month.
Meanwhile, the new PPH raffia and inj., HDPE film and LLDPE C4 film quotes from a major Saudi supplier were unchanged from June. The major producer's LDPE film quotes fell about approx. 90-100 USD/ton compared to last month.
A trader based in Dubai updated the situation of lower-than-average demand and uncertain supply outlook for the UAE market. This trader said: “Domestic manufacturers do not have HDPE film to supply. We will see their exact supply situation in the coming days. It is anticipated that deal prices will fall due to demand, but supply constraints could hinder negotiations.”
Eastern Mediterranean markets go down for 3 consecutive months
In the Eastern Mediterranean region, Jordan and Lebanon polyolefin markets extended their downtrend for the third month in a row as ample supplies and weak activity left suppliers with few options.
In Jordan, PPH quotes raffia and inj. of a major supplier of Saudi Arabia fell by about $250/ton compared to June, to $1,420/ton CIF Aqapa. The price of LDPE film of these major producers fell by about $220/ton to $1,560/ton, while quotes for HDPE film and LLDPE film both fell by about $90-110/ton, to $1,350/ton. in a similar manner.
Quotations for HDPE film and LLDPE C4 film from another supplier were also updated at $1340/ton and $1320/ton respectively, CIF Aqaba.
“Supply is always available and deals can be signed at a lower price,” said an Amman trader, adding that activity has been quiet because of market participants. mainly focused on basic needs before the Eid al-Adha holiday.
In Lebanon, prices of major Saudi producer Saudi Arabia have fallen markedly from previously updated prices in June, to $1,430-1460/ton PPH raffia and inj., $1350/ton LLDPE C4 film and HDPE film, and USD 1550-1560/ton LDPE film, CIF Beirut.
A trader at Fanar updated: “Previous prices were deemed too high to trade, so prices continued to fall. Market participants are waiting for more quotes before entering the negotiations. Meanwhile, demand and activity are slower than usual.”
Source: chemorbis.com
