Offer received for local PE, PP on cash, FD Philippines basis (including 12% VAT in PHP term, all equivalent in USD excluding VAT)
Import PE, PP offers on LC at sight, CIF Philippines Main Port basis
A converter in the Philippines received offers for import PE and PP for July shipment with a salient adjustment which put the company under difficult situation. As of June 25 morning, the converter received import offers for LLDPE Film C4 and PP Homo Film of United Arab Emirates origin with increases of $100/ton and $130/ton respectively as compared to the offers for June shipment. During the same timeframe, Thai PP Homo Film cargoes have increased by $80/ton. Regarding the notable increases, the converter commented, “We are planning to purchase some quantities, but we might purchase less than usual due to the uncertainties in the market. For PE, we prefer to wait for fresh offers from other producers. While for PP, we have to procure some volume in the near term as we are running out of stock. We are going to try to submit bids,” as stated to SSESSMENTS.COM.
Demand-wise, the converter informed that their finished product sales in June are considered healthy since the Philippines government has loosened the lockdown. However, the converter is concerned regarding the sustainability of demand once the replenishment activity is done. In the days to come, PE prices have some room to increase further as it is riding on crude oil prices, SSESSMENTS.COM was told.
Tags: Asia Pacific,English,News,PE,PP,Philippines,SEA
Published on June 25, 2020 5:28 PM (GMT+8)Last Updated on June 25, 2020 5:28 PM (GMT+8)
