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.