31 July 2012 09:58 [Source: ICIS news]
By Ong Sheau Ling
SINGAPORE (ICIS)--Buying activities in the ?xml:namespace>
A major Saudi producer announced a $30-70/tonne (€25-57/tonne) or about 5% increase in August prices for all PE and PP, except low density PE (LDPE) film, from July, taking into account increases in feedstock costs.
In the Gulf Cooperation Council (GCC) region, excluding
August prices of LDPE films, on the other hand, were rolled over from July at $1,400/tonne DEL GCC, they said.
A largely stable key
Some are saying that the higher August offers are not justified, given subdued demand for the polymers as regional converters have previously stocked up on cargoes in preparation for the month-long Ramadan, which began on 20-21 July, they said.
“The producers have to consider the current demand. It is Ramadan, demand is weak,” a key Saudi converter said.
“We are pretty upset with the increase and based on the pricing mechanism here, we have limited room [for] negotiation,” another major Saudi processor said.
In the Saudi Arabian domestic market, August settlements for LDPE film were unchanged from July at $1,400-1,450/tonne DEL.
For LLDPE films, August prices in the Saudi market was $50-70 higher from July at $1,240-1,300/tonne DEL, while HDPE film prices rose $50/tonne to $1,330-1,370/tonne DEL. PP raffia prices were $50-60/tonne higher at $1,300-1,350/tonne DEL, market players said.
“We do expect an increase in August – like about $20-30/tonne, but now it is double [that amount],” said a source from a UAE-based processor, which is intending to cut its August purchases.
“The price rebound now just came at the wrong time. Buyers are not ready,” a UAE-based trader said.
Spot PE and PP prices in the
“The higher August offers just made things worse. Business is already slow in Ramadan with shorter working hours and now, our customers may just cut their purchases further,” another UAE-based trader said.
($1 = €0.82)
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