3 April, 2018
A major Saudi Arabian producer approached global PE markets with different pricing policies for April as players in China, Turkey, Egypt and the Middle East confirmed.
The producer announced its April PE prices with significant decreases to China due to the ongoing tepid stance of demand amidst ample domestic availability in the country. “The Saudi major cut its offers notably by $80/ton for HDPE film, by $90-100/ton for LLDPE film and by $110/ton for LDPE film when compared to its March levels,” an agent of the producer reported.
Converters in Turkey received April PE offers from the major producer with decreases in line with their earlier expectations. The major Saudi producer revealed its new offers to the country with visible drops of $60/ton for LLDPE c4 film and $30/ton for HDPE film when compared to March. A converter noted, “We found the producer’s new offer levels to be too high to accept. Demand is quite slow in Turkey. We believe that sellers will concede to additional small discounts from their initial offers when concluding April deals.”
A few players in Egypt reported that the Saudi major announced its April PE prices with a $10/ton increase from its initial March levels. “We expect to see some downward revisions from the producer as their new levels indicate larger increases of around $80/ton when compared to the levels at the end of March,” a few buyers commented.
In the United Arab Emirates, a converter received April PE offers from the Saudi major with rollovers to $30/ton decreases when compared to March. “We expect to see some further reductions in PE prices in May. Demand is okay while supplies are sufficient,” the buyer noted. According to another Emirati converter, the major producer raised its HDPE film offers by $10-20/ton compared to its latest March levels while applying a decrease of $20/ton on its LLDPE film c4 offers.
Meanwhile, the major producer announced April PE prices to its domestic market with increases of SAR225/ton ($60/ton) for HDPE, SAR112/ton ($30/ton) for LLDPE and SAR113/ton ($30/ton) for LDPE film, according to players in Saudi Arabia. A trader opined, “We think that other local producers will follow the major’s pricing policy in the days ahead.”