Middle Eastern PP offers for January have dipped from December levels in Asia and Egypt in line with sluggish buying interest and the approaching Chinese New Year holiday during the last week of January, as per ChemOrbis.
A Saudi Arabian producer had initially announced January prices to China with US$90/ton decreases for PP raffia and with US$30/ton drops for PP block copolymer injection. The seller, who allocated 10,000 tons of PP to China for January, wrapped up business for the month after conceding to additional decreases of US$10/ton for homo-PP and US$20-40/ton for PP block copolymer injection. Supplier’s January deals are indicating a cumulative drop of US$100/ton for PP raffia and a US$50-70/ton cut for PP block copolymer injection when compared to December offers. A trader offering on behalf of a Saudi Arabian producer reported selling PP raffia cargoes to converters, and PP block copolymer injection offers to both traders and converters. The same producer also concluded deals for homo-PP in the Southeast Asian market with decreases of US$110-130/ton from December levels. Another major Saudi Arabian producer revealed January sell idea to China with noticeable decreases of US$110/ton for PP raffia and injection with respect to December prices. “However, we receive even lower counterbids from buyers and therefore, despite our large decrease amounts, we are mulling over offering additional discounts if we see serious buying interest,” he further added. Meanwhile, the producer has started to offer small amounts of PP block copolymer to China while adding that they are planning to raise their PP block copolymer quotas to the country gradually as of next year.
In Egypt, Middle Eastern producers also started to announce January prices to the market while their new prices follow a similar trend like in Asia. A regional producer issued US$20/ton price cuts on their PP raffia, PP injection and PP block copolymer offers while lowering their PP random copolymer offers by US$40/ton when compared to their most recent December levels, as per ChemOrbis. A trader offering on behalf of the seller had earlier reported possible down revision of prices if the rest of the Middle Eastern producers come with more competitive prices than their offer levels. By the time of publishing, there were reports suggesting that even lower Middle Eastern prices have started to enter the market and the abovementioned regional producer has adjusted down their prices in accordance with their earlier remarks, although it was not yet confirmed with the producer.