Abstract:

　　Sources in several major global markets have reported receiving lower PE offers from major　Middle Eastern producers this week. Sluggish demand stemming from ongoing economic　uncertainty was cited as the main factor behind producers' price cuts, with many buyers　waiting on the sidelines in anticipation of further price declines in the days ahead.

　　In Asia, import PE prices moved downward this week in accordance with the market　expectations. Producers offering near the high end of the overall offer range conceded to　price discounts on their offers in order to encourage sales as buyers are showing very　little interest in offers situated at the upper end of the overall range. A major Middle　Eastern producer reported reducing their LDPE film offers by $60-70/ton in China and by　$100/ton in Southeast Asia, with the producer complaining that they are still having　difficulties concluding sales even after agreeing to these significant price cuts. Another　Middle Eastern producer, whose LLDPE film offers to China and Southeast Asian were reported　at the lower end of the range after they agreed to a $100-120/ton price cut last week, said　that they managed to conclude some deals at their new price levels this week. Several re-exporters in China reported that they were offered $30-50/ton discounts on Middle Eastern　HDPE film from a global producer this week, while a buyer in Malaysia stated that they　received an offer for Middle Eastern LDPE film at prices $65/ton below the producer's most　recent offer level, commenting that they find this offer attractive as it is stands at the　low end of the overall import range.

　　In Egypt, a Middle Eastern producer who had been offering at the high end of the overall　range reported reducing their LDPE film offers by $30/ton this week to spur greater buying　interest, with some deals being reported at their new price level. Another Middle Eastern　producer announced a price decrease of $50/ton on their LLDPE film offers this week, with　the producer's price cuts resulting in a $50/ton decreases in the overall import level for　LLDPE film. Another Middle Eastern producer, who had announced a $20/ton price reduction　on their LDPE film offers last week, followed last week's price cuts with a $40/ton price　reduction on their LLDPE film offers this week.

　　Lower Middle Eastern offers were also reported in the Turkish market this week. A Middle　Eastern producer conceded to a price reduction of $30/ton on their LLDPE film offers this　week, with the producer's new offer levels constituting the low end of the overall LLDPE　film import range in Turkey. Another Middle Eastern producer announced a $20/ton reduction　on their offers for HDPE film, with buyers commenting that they expect to see more HDPE　film decreases from Middle Eastern producers over the near term as theoretical calculations　based on the prevailing offer levels for Middle Eastern HDPE film in the Chinese market　suggest that Middle Eastern sellers still have some room to come down in the Turkish　market.