Saudi major reveals PP, PE offers to Mid-East, Africa

30-Sep-15

A major Saudi Arabian producer started to approach Middle Eastern and African markets with its new PP and PE offers for October, players reported, following the end of the Eid-al-Adha holiday, according to ChemOrbis pricing service. The producer mostly preferred to roll over its October PP and PE offers to its domestic market while their export offers to Egypt and Kenya for both products indicate increases on a month over month basis. In Saudi Arabia, players reported that the producer’s new PP offers held steady. PE offers were rolled over as well except for HDPE film, which witnessed a small monthly decrease. A converter in Saudi Arabia commented, “Demand remains dull as players are resuming their work after the end of the holiday across the country. The market may become fully functional only by next week.” Players in Egypt, meanwhile, reported receiving initial October offers from the Saudi major with large increases. The increases in PE were larger than that of PP, according to buyers. However, buyers were surprised by the amount of hikes sought given the ongoing weak performance of demand. Prior to the holiday, there were some expectations of a possibly firmer trend, although the size of the increase requests made by the producer have exceeded their expectations. “We will be waiting to hear local PP and PE producers’ offers as well as other regional producers’ new October levels before deciding on any new purchases,” said an Egyptian converter. A buyer in Kenya reported receiving initial offers from the Saudi major with a modest increase of US$20/ton this week both for PP and PE. The buyer reported that demand is tepid in the country and that the depreciating local currency reduces the appetite for stock replenishment from the import market.