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Saudi major issues Dec PE, PP offers to local market and Egypt

Market players in Saudi Arabia and Egypt reported that a Saudi major revealed its December PE and PP offers with rollovers from November to both markets. Some players reported that new offers came in line with their expectations whereas some argued that they were expecting to see some decreases on the major’s new offers given muted demand which would reportedly deepen due to the nearing year-end period.

According to a plastic end manufacturer, the Saudi major rolled over its December PP and PE prices to its local market at its last November levels.

The converter commented that the market state is not steady given the political unrest while demand is below average and they are not expecting any major changes given the year-end period.

A plastic end product manufacturer operating in Egypt also received rollovers from November for another month.

“The producer rolled over their prices for a sixth consecutive month while the producer’s new price announcement came against our expectations as we were expecting the producer to issue some decreases on their December offers given the year-end period and the upcoming Christmas holidays. We will wait to hear other Middle Eastern producers’ December offers before making any fresh purchases,” reported the converter.

However, a trader receiving new prices from the major said that the new announcements came in line with their expectations, adding that they are observing the market’s trend cautiously to see the impacts of the recent gains in the dollar parity on the market and they will wait for other producers to reveal their offers before they decide their next move in the market.

In Egypt, the fluctuating exchanges rates continue to set the trend in the PE and PP markets. Players are cautiously approaching the markets due to the rapidly changing parities and they refrain from making risky import purchases under these circumstances. In addition, liquidity tightness and the problematic opening of LCs still hinder import activities. Most buyers prefer to make purchases from the local market albeit in limited quantities and no major improvement is expected in buying interest in the near term. In the face of all these factors, some players hope to achieve some discounts on their December deals.

Similarly, in Saudi Arabia, demand remains slow due to the ongoing political and economic woes and no major improvement is expected in buying activity as the year-end lull nears.



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