Saudi Producer Cuts June PP & PE Prices After Recent Uptrend

A major Saudi producer has announced its June PP and PE pricing for the domestic market, introducing the first round of reductions after three straight months of increases. The previous upward trend, which peaked in April, was largely supported by stronger crude oil values and regional geopolitical tensions.

For June, most PP and PE grades witnessed price decreases as market conditions softened and buyer resistance increased. However, LLDPE film moved against the broader trend, recording a price increase due to limited availability and tight supply in the local market.

Homo-PP Raffia and Injection grades saw the largest adjustment, with prices falling by SAR 285/ton compared to May levels. HDPE and LDPE grades also moved lower month-on-month, while LLDPE film was the only grade to register an increase.

Market participants reported that trading activity remains relatively slow following the Eid al-Adha holidays. Buyers have been cautious with purchases amid weak downstream demand and slower end-product sales, leading many to expect price corrections after the previous months' increases.

June Local Prices (FD Jeddah, Cash Basis, Excluding VAT)

Homo PP Raffia & Injection
SAR 5,284/ton (Down SAR 285)

LDPE Film
SAR 5,771/ton (Down SAR 86)

LLDPE Film
SAR 4,697/ton (Up SAR 108)

HDPE Film
SAR 4,914/ton (Down SAR 223)

HDPE Injection
SAR 4,996/ton (Down SAR 226)

HDPE Blow Molding
SAR 5,119/ton (Down SAR 233)

Market Outlook

The latest adjustments indicate a shift in market sentiment after several months of price increases. While most polymer grades are facing downward pressure due to weaker demand, supply tightness continues to support LLDPE film prices. Market participants will continue monitoring demand recovery and product availability in the coming weeks.

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