The polyethylene market price in the Middle East during Q3 and Q4 of 2024 reflects a delicate balance between regional risks and supply disruptions. As geopolitical tensions intensify, trade flows across the region are being reshaped, creating mixed pressures for producers and buyers alike.

Regional Variations in PE Prices

In Saudi Arabia, local offers have remained steady to slightly lower following a series of price hikes earlier in the year. However, the broader PE Middle East market reveals increasing complexity, with regional instability and economic uncertainty weighing on buyer sentiment. In the UAE, the high-end low-density polyethylene (LDPE) offers have declined, reflecting softening demand and growing competition.

Competitive US-origin offers have emerged in Lebanon, adding further downward pressure on the polyethylene market price. Meanwhile, in the Eastern Mediterranean, PE prices have stabilized despite weak demand and ongoing economic challenges.

Impact of Geopolitical Risks

The potential for widespread conflict in the region has created significant uncertainty. Political instability has disrupted trade flows and left markets in a state of flux, with participants bracing for potential supply chain disruptions. Buyers across the PE Middle East market are increasingly hesitant to commit to long-term purchases, further exacerbating demand challenges.

Outlook for the Polyethylene Market

As 2024 progresses, the trajectory of the polyethylene market price will depend on how regional risks and supply disruptions unfold. Global competitiveness, particularly from regions like the US, will also play a critical role in shaping pricing trends. Despite the challenges, opportunities for strategic purchasing and market positioning remain for those who can navigate the uncertainties effectively.

The Middle East continues to be a crucial player in the global PE market, but its future will hinge on the resolution of political and economic instability, as well as global demand recovery.

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