A global trading house reported to SSESSMENTS.COM that the leading Saudi polyolefins producer announces fresh PE and PP offers to China market, and the momentum is still going strong. From a week earlier, import PE offers across all grades from the leading Saudi polyolefins producer to China market increased by $10/ton. Likewise, the offers for import PP cargoes across all grades from the same producer also increased by $30/ton from a week earlier. On month-on-month comparison, PE offers from the producer recorded an increase of between $30-50/ton, while PP offers captured at $40/ton higher. Sources stated the price quotation is not firm and there is still room for negotiations. In the local market, offers for local PE and PP cargoes from the trader’s end are kept stable from last week.
Despite the firm offers, the trader noted that the buying sentiment has softened from last week. As such, the offers for import cargoes are deemed too high and unworkable in the China market at the moment. Sources explained to SSESSMENTS.COM that to a certain extent, buyers would start to show resistance towards higher prices. However, the possibility for PE and PP prices to decrease is thin as monomer prices remain firm and the local producer claimed to have no inventory pressure.
