The leading Indian petrochemical producer gained momentum to adjust export PE prices and obtained unexpected feedback from certain markets. On June 26, a producer source informed SSESSMENTS.COM that the company’s offers for HDPE Yarn and LLDPE grades to the export market had increased by $30/ton compared to last week’s level, and the offers are for August shipment. Behind the upward adjustment, the producer utilizes the moment from the absence of sales pressure since all of the company’s allocations for June and July shipment are already fully booked.
Surprisingly, the producer gained good response from the South Korea market. Lots of South Korean buyers submitted inquiries this week and the producer managed to sell a considerable volume at good prices, particularly for LLDPE Film C4 at $880-890/ton on LC at sight, CFR Main Port basis; which is quite higher compared to South Asia market, SSESSMENTS.COM noted. To the South Asia market, the producer is mostly offering LLDPE Roto instead of LLDPE Film C4 and better sales captured in Sri Lanka compared to Bangladesh. Whereas to the Southeast Asia market, the producer has sold some volume of HDPE Yarn to Vietnam at $855/ton on LC at sight, CIF Main Port basis.
Previously, SSESSMENTS.COM was told that the producer successfully diverted an abundant volume to the export market due to sluggish demand in the domestic market as an impact of Coronavirus outbreak. But now, the producer’s export volume has back to normal following the picking up demand in the domestic market. Speaking of the domestic market, demand is still mostly coming from the packaging sector; hence, sales for LDPE and LLDPE grades are quite good so far. Contrastingly, demand for HDPE, especially Film grades, is not so healthy as these grades are mostly used to produce durable goods; while demand for durable goods is rather weak at the moment. In the logistics sector, unlike other local producers that have the same manpower issues, the producer somehow managed to overcome the problem by combining inland and railway transportation to move materials to the ports.
Further added to SSESSMENTS.COM, no significant issues reported regarding production from the producer’s end. In the days to come, the producer believes that PE prices will remain firm as supported by the feedstock prices. Moreover, the producer is now trying to sell more ethylene instead of polymers. Citing that selling ethylene is giving the company a better netback. Despite that, the company is still adjusting the proportion of monomers and polymers produced and sold following the market situation.
Export PE offers on LC at sight, CFR/CIF Main Port basis
Tags: Asia Pacific,Bangladesh,English,ISC,India,Korea,News,PE,SEA,Vietnam
Published on June 26, 2020 2:15 PM (GMT+8)
