Polyolefin prices in the Middle East continued to fall in July, with local Polypropylene (PP) and Polyethylene (PE) prices in Saudi Arabia hitting their lowest levels since late 2020, ChemOrbis, global business network serving the plastics industry, reported.
A major Saudi supplier's new PE offer to their local market indicated drops of around $40–80 per ton as compared to last month. The major producer also cut PP prices by around $70 per ton from June.
Middle Eastern suppliers in the United Arab Emirates have cut July offers for PE and PP by $50 per ton compared to June levels. Buyers have also managed to secure additional discounts of $20–90 per ton.
The polyolefin market in the Middle East is expected to remain weak in the near term, with prices continuing to decline. However, there are some signs that demand may start to recover in the months ahead, which could lead to a stabilization or even a rebound in prices.
Polypropylene (PP) and polyethylene (PE) prices in Europe fell for a fourth straight month in July but at a slower pace than in previous months. Prices broke below certain thresholds, triggering cautious purchases from buyers.
PP homopolymer and PP block copolymer injection grade prices have fallen by 21-24% since early April, according to the weekly average data on ChemOrbis Price Index. This represents the lowest level for PP prices since late 2020.
Polyolefin prices hit record lows in July, but buyers are still cautious about the market. Some buyers are taking advantage of the low prices to secure stocks for later delivery, while others are waiting for a potential rebound in prices. Overall demand remains weak, and sellers are hesitant to raise prices.
Sellers are looking for signs that the market has bottomed out, but they are hesitant to raise prices in the current market conditions. They believe that any attempt to hike prices would be met with resistance from buyers, as demand remains weak. Meanwhile, others believe that prices could rebound in the fall, as buyers return from summer holidays and begin to prepare for the year-end festivities. However, most sellers believe that it will be difficult to push prices higher unless demand recovers.