As SSESSMENTS.COM noted, several Middle Eastern PE and PP producers approach China market with a similar pricing strategy, which is highly determined by supply condition. As revealed by a Chinese trader, August shipment PE and PP offers from several Middle Eastern producers to China stay on an upward trend since supply in the market remains relatively tight. One of the Saudi producers is offering HDPE Film and LLDPE Film C4 at $60/ton and $40/ton higher, currently available at $910/ton and $840/ton, respectively. During the same timeframe, another Saudi producer increased HDPE Film offers by $100/ton to $950/ton. For LLDPE Film C4, the second Saudi producer’s cargoes are available at $850/ton and the allocation is very limited.
Similarly, a Qatari producer increased offers for LDPE Film and LLDPE Film C4 by $70/ton and $50/ton respectively. For PP, offers from the second Saudi producer were adjusted up by $50-60/ton for PP Block Copolymer and by $60-70/ton for PP Homo Injection. According to SSESSMENTS.COM pricing database, all offers on LC at sight, CIF China Main Port basis and all changes compared to July shipment offers. Since import offers remain high, the trader sees most buyers keep procuring on a hand-to-mouth basis amid the expectation of better supply after the arrival of delayed Iranian cargoes, which is predicted to enter China market in the near term.
For the outlook, the trader commented to SSESSMENTS.COM that import offers from Middle Eastern suppliers will be maintained firm since feedstock prices are expected to remain high amid crude oil producers’ attempt to cut output. Demand-wise, the trader hopes to see better demand in mid-August or once the severe floods in several parts of China subside.
