A global trading house informed SSESSMENTS.COM about the June shipment PE PP offers from Middle Eastern producers that are coming out earlier. A Saudi producer offers HDPE Film at $760/ton and HDPE Blow Moulding at $750/ton. Both offers dropped by $5/ton from last week's levels. Another Saudi producer offers June shipment LDPE Film at $820/ton but no allocations available, HDPE Film at $735/ton, PP Homo Raffia at $860/ton, PP Block Copolymer at $940/ton, PP Random Copolymer Blow at $990/ton, all dropped by $5/ton from last week except HDPE Film no price comparison available. From a Qatari producer, the offers are at $825/ton for LDPE Film, HDPE Film at $750/ton and HDPE Blow Moulding at $740/ton, both increased by $20/ton compared to May shipment offers. All offers are on LC at sight, CIF China Main Ports basis. Among these offers, the trader commented that offers from a Qatari producer are the most attractive one and the materials are also popular in the China market.
June shipment offers’ announcements from the Middle Eastern producers are earlier than usual for a few reasons. Firstly, Eid Al-Fitr is coming soon by the end of this month, and Middle Eastern producers might be in a holiday mood, and the work efficiency is slow because of the Coronavirus outbreak. Secondly, China’s current market prices are better than last month and tend to stabilize in the near term, in such a manner, producers announced earlier to achieve the sales target before the holiday, since their supply is also tight. Speaking of the demand, the trader revealed to SSESSMENTS.COM that sales for local materials are considered quite good by Wednesday as there was a slight increase in the futures market. The trader also disclosed that the company kept its prices stable despite the stronger futures since Wednesday, hence, buyers were more willing to procure materials. More added, local demand is now supporting the China economy since export demand is still sluggish. As for now, more export-oriented companies are now turning to the domestic market, since only the local market sees healthy demand.
For the pricing outlook, the trader opined that PE and PP prices in the China market during May are more likely to be stable as supported by the firmer crude oil, ethylene and propylene prices. Regarding the Coronavirus outbreak, the trader said to SSESSMENTS.COM that it will take some time for other countries to flatten the infection curve. Citing that China has taken almost six months to fight the virus by strict measures, and until now, there are still occasional cases of new infections in some cities.
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