Middle Eastern August PE prices on the rise in the Mediterranean

Middle Eastern PE suppliers have started to reveal August LDPE, HDPE and LLDPE prices to the Mediterranean markets including Turkey, Egypt and Italy this week, as per ChemOrbis. After a downward trend during most of July, new prices from regional producers are showing up at higher levels across the board for all PE products, with sellers pointing to rising costs and comparatively better demand. A major Middle Eastern producer returned to Turkey this week with monthly increase of US$60-70/ton for HDPE film and US$80-90/ton for LLDPE c4 film for import offers on FCA Turkey, cash basis. Another Middle Eastern supplier, offering on CIF Turkey, cash basis increased offers by US$100/ton for HDPE film and LLDPE c4 film. A regular LDPE supplier from the Middle East also raised August prices on CIF Turkey basis by US$70/ton over July. Higher import prices from the Middle East followed consecutive price hikes from domestic producer Petkim, who had up revised July prices by US$20/ton for HDPE injection, pipe and blow moulding towards the end of last week and by US$30/ton for LDPE film this week. In Egypt, a Middle Eastern producer announced new August PE prices on CIF Alexandria, 90 days deferred payment basis with increases of US$80/ton for HDPE film and US$60-110/ton for HDPE blow moulding over July. Having seen higher PE prices to Asian markets, players in Egypt had already been expecting regional producers to come with higher prices for August. Now, the market is waiting to see new offers from other regular suppliers. In Italy’s spot PE market, traders had already been revising their PE prices upwards since last week on improving demand from buyers, supply concerns for the post-holiday period as a result of the ongoing and scheduled plant shutdowns at some regional producers and firmer feedstock prices. This upward trend includes offers for locally held Middle Eastern cargoes. Although there are no official price announcements for August so far, a buyer reported receiving a €50/ton higher offer for Middle Eastern HDPE film last week while a distributor reported selling Middle Eastern LLDPE c4 film with increases of €30-50/ton over H1-July. “PE suppliers are raising their prices due to reduced availability. Our Middle Eastern supplier has already revealed August prices with increases of €140/ton from July,” he reported. A source at a Middle Eastern producer commented this week that demand from Italian buyers is better compared to last month, warning their customers that they do not have much availability for now due to a plant shutdown.