3 Aug, 2018
Players confirmed that a major Saudi producer adopted a similar pricing policy in its export markets for August after July’s divergent pricing policies. Accordingly, the producer either rolled over its new PP and PE offers or applied decreases of up to $60/ton across the board.
In China, the Saudi major revealed its new offers with decreases of $50/ton for HDPE and LDPE and $60/ton for LLDPE from last month. The producer’s PP raffia offers, meanwhile, indicated $30/ton drops from two months ago.
The fact that the Saudi major had no supply limitations for August and buying appetite towards import cargoes remained insufficient amid the devaluation of the yuan resulted in visible drops for PE for another month.
In Egypt, meanwhile, August marked the fourth consecutive month that the major Saudi producer revealed its PP and PE offers with rollovers to some decreases. The producer announced new offers with rollovers to decreases of $10-60/ton from last month.
In Turkey, the major Saudi producer initially sought rollovers although their prices were deemed as unworkable considering the prevailing market levels. According to a few converters, the major’s LLDPE c4 film prices were revised down by $10-30/ton later on in response to thin buying appetite.
“The producer may not step back from its initial HDPE offers while LLDPE might see downward adjustments. Buyers’ bids are in line with the low end of the price ranges,” a player said.
In Algeria, the Saudi major applied drops of $30/ton for PP and $20-30/ton for PE compared to its initial July levels. A source reported, “Decreases came in line with our expectations; however, we are cautious with our purchases as prices are still high.”
Meanwhile, the Saudi major’s August announcements to its own local market also indicate decreases amid good supply levels and the overall weakness in demand. The major cut its PP offers by SAR147/ton ($39/ton) from July and revealed PE offers with decreases ranging from SAR75/ton ($20/ton) to SAR113/ton ($30/ton).