Sources in several major global markets have reported receiving lower PE offers from major Middle Eastern producers this week, as per Chemorbis. Sluggish demand stemming from ongoing economic uncertainty was cited as the main factor behind producers’ price cuts, with many buyers waiting in the sidelines in anticipation of further price cuts. In Asia, import PE prices moved downward this week in line with market expectations. Producers offering near the high end of the overall offer range conceded to price discounts to encourage sales as buyers are showing very little interest. A Despite reducing LDPE film offers by US$60-70/ton in China and by US$100/ton in Southeast Asia, the producer is still having difficulties concluding sales. Another Middle Eastern producer, whose LLDPE film offers to China and Southeast Asia were reported at the lower end of the range after a US$100-120/ton price cut last week, said that they managed to conclude some deals at these levels. Several re-exporters in China reported receiving offers of US$30-50/ton discounts on Middle Eastern HDPE film from a global producer this week, while a buyer in Malaysia received an offer for Middle Eastern LDPE film at prices US$65/ton below the producer’s most recent offer level, commenting that they find this offer attractive as it is stands at the low end of the overall import range.
In Egypt, a Middle Eastern producer who had been offering at the high end of the overall range reported reducing their LDPE film offers by US$30/ton this week to spur greater buying interest, with some deals being reported at the new price level. Another Middle Eastern producer announced a price decrease of US$50/ton on LLDPE film offers this week, with the producer’s price cuts resulting in a US$50/ton decrease in the overall import level for LLDPE film. Another Middle Eastern producer, who had announced a US$20/ton price reduction on LDPE film offers last week, followed last week’s price cuts with a US$40/ton price reduction on their LLDPE film offers this week. Lower Middle Eastern offers were also reported in the Turkish market. A Middle Eastern producer conceded to a price reduction of US$30/ton on their LLDPE film offers, with the producer’s new offer levels constituting the low end of the overall LLDPE film import range in Turkey. Another Middle Eastern producer announced a US$20/ton reduction on their offers for HDPE film, with buyers commenting that they expect to see more HDPE film decreases from Middle Eastern producers over the near term as theoretical calculations based on the prevailing offer levels for Middle Eastern HDPE film in the Chinese market suggest that Middle Eastern sellers still have some room to come down in the Turkish market.