Polyethylene Analysis, July 18.
Petrotahlil :
China’s PE market turns mixed after 3-week uptrend
• LDPE supplies diminish; LLDPE and HDPE sufficient
• LLDPE futures down CNY135 on week
• Volatility prevails in crude oil futures
• Spot ethylene gains ground on week
• Mid-Eastern PE ($/ton): HDPE film 980-1040 | LDPE film 1000-1030 | LLDPE film 930-960 CIF
SEA’s import PE market seeks direction
• Import prices largely flat on week
• Mid-Eastern suppliers sell out July quotas
• Trading activity limited as buyers await Aug offers
• US PE continues to offer competitive edge
• Fluctuating crude oil weighs on sentiment
• Mid-Eastern PE ($/ton): HDPE film 1000-1070 | LDPE film 990-1040 | LLDPE film 920-990 CIF
• US PE ($/ton): HDPE film 935-970 | LDPE film 980-990 | LLDPE film 900-940 CIF
LDPE prices broke below the €1000/ton threshold in Italy
• €80 drops continue to pass on PE deals
• Players shift their attention towards August
• Early August expectations are mainly stable to softer
• Weak demand, ample supply might pull prices further down
• Rising energy market might offset plunging spot C2
• Local spot (€/ton): LDPE film 990-1060 | LLDPE film 980-1050 | HDPE film, b/m 1030-1140 FD
PE sharp decreases stir buying interest for July in Europe
• Players almost concluded their July deals
• Drops of around €80 continued to pass on PE deals
• Early expectations for August surface stable to softer
• Players don’t exclude possible further drops next month
• Increasing energy costs might hinder downtrend
• Local spot (€/ton): LDPE film 1000-1100| LLDPE film 1010-1040 | HDPE film, b/m 1040-1150 FD | HDPE inj. 1040-1140 FD
PE prices steady amid blurry August outlook in Turkey
• Market sees fewer offers and bids
• Most buyers already secured their needs
• Previous low ends become rare for imports
• No concerns voiced about availability
• Local PE still soft despite mostly flat imports
• US ($/ton): LDPE 970-980 | LLDPE 920-930 | HDPE film 940-980 CIF
• Mid-East ($/ton): LDPE 1000-1020 | LLDPE 940-990 | HDPE film 1000-1020 CIF
• Local ($/ton): LDPE 1330-1380 | LLDPE 1200-1290 | HDPE film 1320-1370 inc VAT
Initial July PE offers revealed softer in Mid-East
• Saudi producer reveal lower offers to local market
• Demand remains flat across region
• Availability is not a concern amid sluggish activities
• Local PE in S.Arabia ($/ton): LDPE 1020 | LLDPE 970 | HDPE 1030 FD
• Import PE in UAE ($/ton): LDPE 1040-1050 | LLDPE 1020-1060 | HDPE 1040-1050 CIF
Egypt’s local PE offers decline further on imbalanced supply/demand
• Import market stable to slightly lower
• Distribution market down on liquidity issues
• Supply-demand imbalance persists
• Players avoid purchasing large volumes
• Import PE ($/ton): HDPE 1050-1060 | LDPE 980-1060 | LLDPE 940-1000
More July PE offers emerge softer in Africa
• Players in Algeria receive three-digit drops from June
• Saudi major’s offers to Morocco indicate steep declines
• Demand remains sluggish with no supply concerns
• South African players uncertain of upcoming term
• Imports in Algeria ($/ton): HDPE 950-1080 | LDPE 1040-1050 | LLDPE 930-1020 CIF
• Imports in Kenya ($/ton): HDPE 1070-1080| LDPE 1130 | LLDPE 1040 CFR
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