Middle East LLDPE prices settle at higher levels in August

02 August 2011 10:52  [Source: ICIS news]

SINGAPORE (ICIS)--August spot prices of linear low density polyethylene (LLDPE) in the Middle East have settled $40-60/tonne (€28-42/tonne) higher than July fixtures, boosted by improved market sentiment and firmer Asian markets, industry sources said on Tuesday.

On 2 August, Middle East LLDPE film was sealed at $1,380-1,400/tonne DEL (delivered) United Arab Emirates (UAE) and $1,320-1,340/tonne DEL Saudi Arabia, local traders and producers said.

LLDPE film prices in the Gulf Cooperation Council (GCC) and East Mediterranean (East Med) increased by 3.2-4.6% in July.

Converters were more willing to accept higher offers announced by GCC-based producers as they are aware that prices have finally bottomed out since prices started to decline in April.

Also, tighter GCC supply because of an unscheduled shutdown and poor operating rates on gas and water shortages have boosted buying ideas, they added.

Qatar’s Qatofin shut its 450,000 tonne/year LLDPE plant at Mesaieed on 12 July because of a technical outage and will restart the unit on 5 August.

Firmer Asian prices have led GCC-based producers to reduce their allocations in the Middle East (please see graph).

Some Oman traders said they were able to sell cargoes of less than 100 tonnes at $1,450/tonne DEL.

($1 = €0.70)

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By: Ong Sheau Ling
+65 6780 4359

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