Due to moderate demand, the prices of Polyethylene and Polypropylene rolled over in Saudi Arabia. The Ex-Works Riyadh LDPE prices observed to be $6168/ton Film grade, $4950/ton for LLDPE injection grade, $4875/ton for HDPE Blow-moulding and $5850/ton for Polypropylene Raffia grade.

The prices were observed to be stagnant to the New Year due to recovering Petrochemical demand and rise in crude oil. Saudi Arabia had increased the crude oil prices sold to Asia and US. The Polymer market seems to be recovered from the previous slow trading atmosphere. India offers opportunities to SABIC in order to grow its Polymer business. India had witnessed strong petrochemical demand recovery from past few weeks and for the upcoming New Year festive.

Polymer demand in the Asian market is projected to grow due to recovering demand in packaging, construction, and industrial segments. Recently, SABIC announced that they had collaborated with Bamberger Polymers to provide customer with its Engineering Thermoplastic and polyolefins. As the market is reviving, the export of Polypropylene to the Asian and European market quickens. The stability in the upstream prices of Ethylene and Propylene was also the reason for this trend in the polymer market.

According to ChemAnalyst, it is expected that the price of Polypropylene and Polyethylene will surge in the upcoming weeks amid improved demand and clearing of existing inventories. The recovering Polymer demand will increase the export market of Saudi Arabia. With increasing price of crude oil, it is expected that the Petrochemical market will soon recover, and the trading is expected to improve. However, the logistics constraints, and delay in the supply chain will remain the major issue as Omicron scare brings back disruption in the supply chain management.