Mid-Eastern PP and PE offers across the globe for May announced with price increases

Middle Eastern suppliers have approached the PP and PE markets across the globe with price increases for May, with support from the firming upstream costs as well as their limited availability, as per ChemOrbis. In Saudi Arabia, a major producer lifted prices in the domestic market for May by US$20/ton for raffia and injection, HDPE film and LLDPE film, a trader based in Jeddah reported. “We expect other regional producers to follow suit. HDPE supplies from the producer were already tight throughout April, although we don’t know if this will still be the case heading into May or not,” he commented. He also thinks that new prices will find acceptance as buyers do not have much choice amid satisfactory demand and already limited supplies. The same producer revealed PP and PE prices to Egypt with increases of US$10-20/ton from April. A distributor based in Cairo commented, “We were already expecting a firmer trend for May and we expect similar prices from other Middle Eastern producers, too. For the local market, prices continue to be supported by the limited availability.” In the nearby Turkish PP and PE markets, where Middle Eastern suppliers feed almost half of the country’s needs, price hikes from the region have been issued since last week. Along with the three producers who have approached the market with monthly hikes of US$20/ton last week, players reported brand new offers this week from two more producers with US$30/ton increases over April. A global trader offering a Saudi PP origin is already sold out for May, according to market players, while a packaging buyer also reported concluding deals this week at the new higher levels of a major Saudi producer on FCA basis. “I have to admit that it is a sellers’ market taking the firmer upstream costs, steady demand and limited availability particularly for fibre into account,” said a PP converter based in Gaziantep. PE buyers, meanwhile, are more cautious, although sellers report improved buying interest for all products. In Asia, price hikes have surfaced for May too. A global producer, who offers from its plant located in Saudi Arabia and adjusts its offers on a weekly basis to China, reported lifting PP by US$10/ton and LDPE by US$10-20/ton this week. A source from the company’s Shanghai office said, “We have been adjusting our offers upwards slightly for a couple of weeks in line with the general trend. We are not so pleased with our May orders so far, although it is not much of a problem for now since our supply is already limited.” According to ChemOrbis, a similar comment came from a Saudi Arabian producer who also raised its May offers by US$30-40/ton for PP and US$40-50/ton for HDPE and LLDPE to both China and Southeast Asia. “Demand has not picked up so far. Buyers may hold their waiting stance for a while more as the markets will be off for half of the week due to Labor Day holidays in the region,” a source from the producer’s Shanghai office quoted.