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A major Saudi Arabia producer has announced July PP and PE shipment offers to Southeast Asia market at mostly softer levels compared to last month. Largest cut is seen in LLDPE film of $30/ton, which is in line with the maker’s previous report of increasing supply for this grade.

The latest price list and month on month changes are shown in the following table: 

“We are surprised about the early price announcement this time. Demand is not strong across the region and that explains to the strong willingness to negotiate from the suppliers,” a regional buyer said.  

Meanwhile, other buyers are waiting for more offers from Middle Eastern suppliers before placing bids with a source added, “Third quarter of the year is traditionally the off-peak season and with the upgraded trade tension between China and the USA, we do expect weaker demand in July. The downward pressure is real and we hope to achieve better negotiation with the supplier.”