Southeast Asian PE Market Players On A Cautious Stance Amid Current Price Trend
- Local PE offers showed further adjustment over the week
- Limited improvement captured in demand for PE resins within the region
- Players stated a bearish outlook as current price trend lacking support from demand
As reported to SSESSMENTS.COM, Southeast Asian PE market players are in a cautious stance amid the current price trend. Within the week commencing June 1, PE prices in Southeast Asia reported stable to increase. In the Philippines and Malaysia, offers for local PE across all grades reported stable. In Thailand, a local PE producer adjusted up the offers for HDPE Film and LLDPE Film C4 by THB500/ton ($16/ton) as compared to last week’s level, citing the limited supply on the producer’s end stemming from maintenance shutdown and firmer feedstock prices. Although the producer made an upward price adjustment, Thai traders did not follow suit. Most of the traders in the country were maintaining the offers stable over the week to attract buyers.
In the import market, import US mLLDPE C6 to Malaysia captured up by $80/ton as compared to the offer received in early May. For LLDPE Film C4, imported US cargoes that are estimated to arrive in Malaysia ports within this month surfaced with an increment of $30/ton compared to fortnight ago. At the moment, SSESSMENTS.COM noted that import offers for US LLDPE Film C4 to Malaysia stand at $780/ton on LC at sight, CIF Malaysia main port basis.
The overall demand for all grades of PE in the Southeast Asia market reported subdued. Buyers showed stiff resistance towards the upward price adjustment amid the slow sales for the end-products. Besides, converters are still having sufficient inventory on hand, hence, not in a rush to do replenishment activities. In the Philippines, the average operating rate at factories is still around 30-35% from the normal capacity due to labor shortage, SSESSMENTS.COM was told. On the supply front, limited supply reported from Thai PTT Public Company Ltd stemming from maintenance shutdown. The producer brought its 300,000 tons/year HDPE plant off-stream on May 25 and will remain offline until June 9. Upon the completion, the producer will conduct maintenance shutdown at its 300,000 tons/year LDPE plant and 400,000 tons/year LLDPE plant for 20-30 days.
Looking ahead, most Southeast Asian PE market players stated a bearish outlook and prefer to adopt a cautious stance. The upward price adjustment is deemed lacking supporting factors since demand for the end-products have yet to show any improvements. As such, market players prefer to stay on the sidelines to avoid any losses, as stated to SSESSMENTS.COM.
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Local/localized PE offers on FD basis, excluding VAT (PHP term including 12% VAT, all equivalent in USD excluding VAT)
| Origin | Product | Transaction Type | Currency | Offers/ton | Equivalent in USD/ton | Payment Term | Delivery Location |
|---|
| Malaysia | HDPE Film | Offer Received | MYR | 3,440 | 807 | 30 Days Credit Term | Malaysia |
| Philippines | HDPE Film | Offer Received | PHP | 51,000 | 911 | Cash In Advance | Philippines |
| Thailand | HDPE Film | Offer Given | THB | 28,000-30,000 | 886-949 | Cash In Advance | Thailand |
| Thailand | HDPE Film | Offer Received | THB | 29,000 | 917 | Cash In Advance | Thailand |
| United Arab Emirates | HDPE Film | Offer Received | THB | 27,000 | 854 | Cash In Advance | Thailand |
| Malaysia | LDPE Film | Offer Received | MYR | 3,980-4,250 | 934-997 | 30 Days Credit Term | Malaysia |
| Southeast Asia | LDPE Film | Offer Received | PHP | 64,000 | 1,143 | Cash In Advance | Philippines |
| Thailand | LDPE Film | Offer Given | THB | 34,000 | 1,076 | Cash In Advance | Thailand |
| Thailand | LDPE Film | Offer Received | THB | 33,000-33,500 | 1,044-1,060 | Cash In Advance | Thailand |
| Malaysia | LDPE Film | Offer Given | THB | 32,000-32,500 | 1,012-1,028 | Cash In Advance | Thailand |
| Malaysia | LDPE Film | Offer Received | THB | 30,500 | 965 | Cash In Advance | Thailand |
| Malaysia | LDPE Film | Sold | THB | 32,000-32,500 | 1,012-1,028 | Cash In Advance | Thailand |
| Southeast Asia | LDPE Film | Sold | THB | 32,500 | 1,028 | Cash In Advance | Thailand |
| Malaysia | LLDPE Film C4 | Offer Received | MYR | 3,390 | 795 | 30 Days Credit Term | Malaysia |
| Philippines | LLDPE Film C4 | Offer Received | PHP | 50,000 | 893 | Cash In Advance | Philippines |
| Thailand | LLDPE Film C4 | Offer Given | THB | 28,000-30,000 | 886-949 | Cash In Advance | Thailand |
| Thailand | LLDPE Film C4 | Offer Received | THB | 29,000 | 917 | 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 Film | Offer Given | 780 | Philippines |
| Middle East | HDPE Film | Sold | 770-780 | Philippines |
| Southeast Asia | HDPE Film | Sell Idea | 850-900 | Southeast Asia |
| Middle East | LDPE Film | Offer Given | 840 | Philippines |
| Middle East | LDPE Film | Sold | 830 | Philippines |
| Southeast Asia | LDPE Film | Sell Idea | 940 | Southeast Asia |
| Southeast Asia | LDPE Film | Offer Received | 870-890 | Thailand |
| North America | LLDPE Film C4 | Offer Received | 750-780 | Malaysia |
| North America | LLDPE Film C4 | Purchased | 750 | Malaysia |
| Middle East | LLDPE Film C4 | Offer Given | 770 | Philippines |
| Middle East | LLDPE Film C4 | Sold | 760-770 | Philippines |
| Southeast Asia | LLDPE Film C4 | Sell Idea | 850-900 | Southeast Asia |
| Middle East | LLDPE Film C4 | Offer Received | 810 | Thailand |
| Middle East | LLDPE Film C4 | Purchased | 810 | Thailand |
| North America | mLLDPE C6 | Offer Received | 800* | Malaysia |
| North America | mLLDPE C6 | Purchased | 800* | Malaysia |
Description: *offers on EXW Port Klang, Malaysia
Tags: Asia Pacific,English,PE,SEA,Weekly
Published on June 4, 2020 3:09 PM (GMT+8)
Last Updated on June 4, 2020 4:19 PM (GMT+8)
