Two Middle Eastern producers lifted PP, PE offers to China

While a Southeast Asian producer stepped back on PE offers to China, other Middle Eastern makers, whose cargoes were priced at the end of the overall price range, are now attempting to match the firming trend, citing limited supply and satisfactory inquiries from Chinese buyers.

A Saudi Arabia producer reportedly introduced $90/ton increased on both PP and PE parcels compared to late August. The following table showed the producer’s latest price list, all based on CFR China, LC AS term.

Chinese buyers are showing very limited respond toward the offers claiming that market is nearing the peak and actual acceptance levels are much lower. “Buyers are still negotiating and it might be difficult to achieve full hike target as other suppliers have agreed to discount. We are having regular supply and currently collecting more bids and shall come out with final prices soon,” a distributor said.

Meanwhile, a Qatari maker adopted a more humble stance in lifting PE prices to China this week, with only $20/ton increased on LLDPE film cargoes, bringing latest offers to $1240/ton CFR China, LC AS term. Price list for LDPE film holds steady at $1290-1300/ton with the same term. A source close to the producer informed, “We have been keeping the offers opened since earlier this week and still having quantity today. Buyers are more cautious and might need more time to accept the increases.”

China is entering the traditional high demand season and there is a strong expectation amongst international suppliers that pre-holiday replenishment activities would be healthy this year. Besides the absence of USA producers in the after match of the hurricane Harvey; Iranian sellers are unable to fulfill new orders given high backlog amid unstable production rate. Despite a general slower purchasing activities compared to last week, Chinese players are not expecting any downward adjustment anytime so soon.