Middle Eastern polypropylene and polyethylene producers were eyeing European markets as prices in Asia continued to tumble, sources said Tuesday.
Asian PP prices have fallen dramatically on the back of seasonal destocking and crumbling demand from China, the main importer of polyolefins in the region, while demand in Europe is holding up better.
Raffia grade PP was assessed by Platts Tuesday at $1,130/mt CFR FE Asia, with injection grade at $1,120/mt CFR FE Asia, down 11% and 12% respectively since the start of the month, when both grades were assessed at $1,275/mt CFR FE Asia.
High density polyethylene film prices were assessed by Platts Tuesday at $1,270/mt CFR FE Asia, down 9% from $1,370/mt at the start of the month. Low density polyethylene prices were assessed at $1,240/mt, down 11% from $1,385/mt CFR FE Asia at the start of the month.
“The Asian price crash may see Middle Eastern products being moved to Europe,” a source said, adding that price falls in Asia were outpacing those seen in Europe.
Middle Eastern material makes up the majority of Asian PP imports, with suppliers heard to be trying to force material into a market which has “frozen up.”
PP demand in Europe is slowing towards the end of the year but heard to be notably stronger than that in Asia.
PP homopolymer was assessed by Platts at Eur1,140/mt FD NWE Monday, Eur70/mt down on the week as ever-tumbling prices upstream depress the market towards the end of the year.
LDPE was assessed by Platts at Eur1,220/mt FD NWE Monday, and last week’s sentiment was characterized by caution in spot purchasing stemming from the recent crude developments.
– Platts.com
