Southeast Asian Market Players Doubted Sustainability Of Current PE Price Trend Considering Demand Conditions
- Local and import PE offers within Southeast Asia market captured in a different trend
- PE demand remains sluggish amid several influencing factors
- State of demand expected to drag PE prices in the days to come
Southeast Asian market players contacted by SSESSMENTS.COM doubted the sustainability of the current PE price trend considering the demand conditions. In Thailand, a trader stated that the latest local offers from the country’s PE producer captured at THB1,000/ton ($31/ton) higher for HDPE Film and LLDPE Film C4 cargoes, and at THB500/ton ($16/ton) higher for LDPE Film. On the other side, another Thai trader decided to roll over prices for local LDPE Film but adjusted down local HDPE Film and LLDPE Film C4 offers by THB500/ton ($16/ton) on the low-end of the price range. In the Philippines, no fresh offers from the local producer yet. In Malaysia, local PE offers remain stable. All compared to last week’s levels. However, some Malaysian distributors said that they already sold out July delivery and are currently collecting customers’ inquiries for the upcoming delivery. Detailed information for Indonesia and Vietnam market is available in WeeklySSESSMENTS of the respective countries.
In the import market, a Malaysian converter reported on receiving offers for Qatari LLDPE Film C4 at $30/ton lower than last week’s level. Despite the decrease, the converter still attempted to bid at $830/ton-level, or $20/ton lower than the initial offer level. To date, no confirmation from the supplier regarding bids yet. Via a regional trader, import offers for Saudi LLDPE Film C4 to Cambodia and Malaysia surged by $50/ton on a monthly comparison, available at $920/ton. Some customers submitted bids at a below $900/ton-level but were rejected by the trader. Eventually, Saudi LLDPE Film C4 cargoes sold at $900/ton to Malaysia and at $910/ton to Cambodia. In Myanmar, offers for Thai HDPE Blow Moulding and HDPE Yarn, Middle Eastern HDPE Blow Moulding, as well as US LLDPE Film C4 were unchanged from last week’s levels. Moreover, a Thai trader commented that most import offers to the Southeast Asia market for both HDPE Film and LLDPE Film C4 at above $900/ton-level was deemed unworkable, while for LDPE Film, offers at $970-980/ton-level were acceptable considering the limited supply. All offers on LC at sight, CIF Main Port basis, SSESSMENTS.COM noted.
As reported to SSESSMENTS.COM, the overall demand for PE resins within the Southeast Asia market is considered as sluggish this week. In Thailand, the market remains quiet and shows no sign of improvement as buyers prefer to stay on the sidelines amid high prices and sufficient inventory. In the Philippines and Malaysia, buying sentiment for PE resins is in-line with the weak end-product demand. Some Philippines manufacturers are currently running at a reduced rate but plan to cut production rate further next week taking into account the weak demand. While in Myanmar, demand is slowing down due to the advent of the rainy season. Besides, high prices also discouraged buyers from making fresh procurements. On the supply side, supply shortage for HDPE Film was reported in Malaysia. Additionally, a trader reported that the overall supply for LDPE Film in the Southeast Asia market is relatively limited at the moment.
For the outlook, the majority of Southeast Asian market players believe that PE price will be unable to maintain its current bullish trend, particularly for the local offers. Players cited to SSESSMENTS.COM that the current state of demand; which is predicted to be stagnant, will likely drag PE prices in the days to come.
Local PE offers on FD basis, excluding VAT in all terms (except in PHP term including 12% VAT)
| Origin | Product | Transaction Type | Currency | Offers/ton | Equivalent in USD/ton | Payment Term | Delivery Location |
|---|
| Malaysia | HDPE Blow Moulding | Price List | MYR | 4,040 | 949 | 30 Days Credit Term | Malaysia |
| Malaysia | HDPE Film | Price List | MYR | 3,960 | 930 | 30 Days Credit Term | Malaysia |
| Philippines | HDPE Film | Offer Received | PHP | 57,000 | 1,030 | Cash In Advance | Philippines |
| Thailand | HDPE Film | Offer Given | THB | 29,500-30,000 | 932-948 | Cash In Advance | Thailand |
| Thailand | HDPE Film | Offer Received | THB | 31,500 | 995 | Cash In Advance | Thailand |
| Thailand | HDPE Film | Sold | THB | 29,500-30,000 | 932-948 | Cash In Advance | Thailand |
| Malaysia | LDPE Film | Price List | MYR | 4,390-4,530 | 1,029-1,061 | 30 Days Credit Term | Malaysia |
| Thailand | LDPE Film | Offer Given | THB | 32,500 | 1,027 | Cash In Advance | Thailand |
| Thailand | LDPE Film | Offer Received | THB | 33,500 | 1,058 | Cash In Advance | Thailand |
| Malaysia | LLDPE Film C4 | Price List | MYR | 4,270 | 1,000 | 30 Days Credit Term | Malaysia |
| Philippines | LLDPE Film C4 | Offer Received | PHP | 56,000 | 1,012 | Cash In Advance | Philippines |
| Thailand | LLDPE Film C4 | Offer Given | THB | 29,500 | 932 | Cash In Advance | Thailand |
| Thailand | LLDPE Film C4 | Offer Received | THB | 31,500 | 995 | Cash In Advance | Thailand |
| Thailand | LLDPE Film C4 | Sold | THB | 29,500-30,000 | 932-948 | Cash In Advance | Thailand |
Import PE offers on LC at sight, CIF Main Port basis
| Origin | Product | Transaction Type | Offers (USD/ton) | Delivery Country |
|---|
| Middle East | HDPE Blow Moulding | Offer Received | 910-920 | Myanmar |
| Southeast Asia | HDPE Blow Moulding | Offer Received | 940-950 | Myanmar |
| Middle East | HDPE Film | Offer Received | 930 | Malaysia |
| Southeast Asia | HDPE Film | Sell Idea | 870-900 | Southeast Asia |
| Southeast Asia | HDPE Yarn | Offer Received | 940-950 | Myanmar |
| Southeast Asia | LDPE Film | Sell Idea | 970-980 | Southeast Asia |
| Middle East | LLDPE Film C4 | Offer Given | 920 | Cambodia |
| Middle East | LLDPE Film C4 | Bid Received | 890 | Cambodia |
| Middle East | LLDPE Film C4 | Sold | 910 | Cambodia |
| Middle East | LLDPE Film C4 | Bid Given | 830 | Malaysia |
| Middle East | LLDPE Film C4 | Bid Received | 890 | Malaysia |
| Middle East | LLDPE Film C4 | Offer Given | 920 | Malaysia |
| Middle East | LLDPE Film C4 | Offer Received | 850 | Malaysia |
| Middle East | LLDPE Film C4 | Sold | 900 | Malaysia |
| North America | LLDPE Film C4 | Offer Received | 840-860 | Myanmar |
| Southeast Asia | LLDPE Film C4 | Sell Idea | 870-900 | Southeast Asia |
Tags: Asia Pacific,English,Freemium,PE,SEA,Weekly
Published on July 23, 2020 1:23 PM (GMT+8)
Last Updated on October 1, 2020 2:25 PM (GMT+8)
