26 Nov - Saudi major lifts Dec PP, PE offers sharply to China
Source: ChemOrbis An agent of a major Saudi Arabian producer reported that their supplier announced its December PP and PE offers to China with sharp increases from November.
The major producer lifted its December offers by $200/ton for LDPE film, by $100/ton for LLDPE C4 film, by $80/ton for HDPE film and by $130/ton for homo-PP raffia from last month.
The producer’s new offer levels stand at $1400/ton for LDPE film, at $1050/ton for LLDPE/HDPE film and at $1130/ton for homo-PP raffia, all on CIF China, cash basis.
The agent commented, “Import polyolefin prices have surged due to tight availability. Supply from the US and Iran to China is still limited. The major Saudi producer’s December allocation, meanwhile, is at the usual level. Demand from China remains robust and deals are concluded at higher prices. The appreciation the yuan against the USD has boosted demand towards imported cargoes.”
The $200/ton increase in December offers indicates that LDPE film gains continue to outpace those of LLDPE and HDPE film.
Meanwhile, the agent voiced caution regarding the sharp increases, saying, “We are planning not to build stocks at the current high prices. The market has increased quite fast, so we worry that prices could see a sudden drop. We heard LDPE film prices as high as $1500/ton CIF.”