Further PE price declines in GCC expected due to weak sentiment

SINGAPORE (ICIS)--Polyethylene (PE) prices in the Gulf Cooperation Council (GCC) region are expected to decline further as buying sentiment weakens considerably on the back of falling crude oil prices, industry sources said on Wednesday.

“Crude is crashing. There is still room for correction in the PE markets in the GCC,” according to a Dubai-based trader.
 

PE sales in the Middle East have slowed down considerably as buyers are currently purchasing only 40-50 percent of their normal volumes amid a lack of direction, the sources said.

With no sign of prices bottoming out, Dubai-based traders said they could slide indefinitely until crude oil and ethylene prices stabilise.

The slide in oil prices is also causing feedstock ethylene prices to decline due to a negative outlook in the upstream markets.

Buyers are well-stocked and are in no hurry to buy new volumes, they said.

However, producers said they are confident buying will take place in the coming weeks as plastic processors need to restock before the end-year season in Europe and Asia.