Players in Egypt, Saudi Arabia receive November PP prices

04-Nov-15

Players operating in Egypt and Saudi Arabia have started to report new November PP prices from the Middle Eastern producers, according to ChemOrbis. In Saudi Arabia, a major local producer issued new PP prices with decreases of SAR112/ton (US$30/ton) from October. The producer, who had issued rollovers for October, had seen competition from other Saudi producers who had issued decreases and who had offered at more competitive levels during October. The same Saudi producer revealed their new prices in Egypt, too. An end product manufacturer reported receiving new offers from the producer with rollovers from their initial October prices. However, their new homo-PP prices indicate increases of up to US$100/ton when compared with their latest October levels. The producer had adjusted down their October prices by US$20/ton at first. Following that initial adjustment, even lower prices had emerged in the market from the producer with up to US$100/ton decreases during October. Therefore, when comparing the producer’s new November prices with their end-October levels, they indicate almost a US$100/ton increase. A converter who received these new November levels commented, “The producer’s allocations are limited for November while the market is weak and is not likely to absorb further hikes. We are now waiting to hear more prices from the region and we expect the rest of the Middle Eastern producers to follow a similar pricing policy.” Meanwhile, another Egyptian converter reported receiving new November PP prices from a different Saudi Arabian producer as reported on ChemOrbis. “The new November homo-PP prices indicate rollovers from the producer’s initial October levels although they are $40/ton above their latest October levels. However, like last month, we believe that discounts will be obtainable given slow demand,” commented the buyer.