Another Saudi major lifted PP, PE prices to Southeast Asia

A Saudi Arabia producer has reportedly announced fresh PP and PE offers for March delivery to Southeast Asia with up to three digits hike compared to last month. The producer price list is shown in the following table:

A source from the producer informed, “We are having very limited cargoes this month due to the persistent production issues, especially for PP block copolymer, we have only one container for spot market. Customers might resist the new offers, however, we plan to hold firm on our cargoes.”

In fact, initial respond from the market is not very positive, pointing to high raw material prices and weak end product demand. An Indonesian buyer commented, “The producer’s LLDPE film price is near to what domestic suppliers are offering on delivered term at the moment. We think that the maker might face difficulties in achieving full hike target.”