Local PE Prices In Thailand Moved In The Opposite Of Price Trend In Some Other Southeast Asian Countries
- Demand for PE in the region remains sluggish
- Malaysian converters are still running between 60-70% of the normal production rate
- Malaysia’s Lotte Chemical Titan will conduct maintenance at HDPE plant
SSESSMENTS.COM noted that local PE prices in Thailand moved in the opposite of price trend in some other Southeast Asian countries. A Thai PE producer attempted to boost sales by giving promotional prices. Compared to last week, offers for PE across all grades from the producer were THB750/ton ($23/ton) lower for minimum purchases of 225 tons. A local trader claimed that offers received from the producer this week for HDPE Film decreased by THB1,000/ton ($31/ton) while offers for LDPE Film and LLDPE Film C4 dropped by THB2,000/ton ($62/ton) and THB750/ton ($23/ton), respectively. The changes were also compared to a week ago. To follow the producer’s move, a trader offers localized HDPE and LLDPE Film C4 from Malaysia at the same level as the producer’ offers, at THB26,500/ton ($825/ton) on cash, FD Thailand basis and excluding 7% VAT, without a minimum purchase requirement.
From the import market, LLDPE Film C4 offers from a Middle Eastern PE producer to Malaysia increased between $10-20/ton compared to a fortnight ago. Offers for HDPE Film and LDPE Film from the producer were stable on a weekly comparison. To Myanmar, offers for HDPE Film of US origin increased between $80-90/ton compared to levels at the end of April. On a monthly comparison, offers for HDPE Film and LDPE Film from a Malaysian polyolefins producer to the Philippines went up by $20/ton and $50/ton, respectively. For Detailed information for Indonesia and Vietnam market is available in WeeklySSESSMENTS of the respective countries.
Overall demand for PE in the region remains sluggish. Buyers are reluctant to purchase in big volume. Although the government has loosened lockdown rules in Malaysia, most converters are still running between 60-70% of the normal production rate as end product sales are unimproved. As for the Philippines, activities in the market have resumed as some areas in Luzon are already under General Community Quarantine (GCQ) status. However, demand has yet to improve as Metro Manila will remain under lockdown until May 31. On the supply side, SSESSMENTS.COM was told that LLDPE Film C4 allocation for June shipment from a Middle Eastern PE producer is limited and only for regular customers. In the production sector, Malaysia’s Lotte Chemical Titan will conduct maintenance at the company’s HDPE plant no. 1 with a production capacity of 220,000 tons/year in early June for around two weeks.
Market players opined to SSESSMENTS.COM that chances for further increases in PE prices are slim as demand is unable to support high prices. Significant increases will only be possible when demand remarkably improves on post COVID-19 outbreak, the players added.
Click below to view related stories and content on SEA PE:
WeeklySSESSMENTS: SEA PE Prices Week Starting May 4
NewsSSESSMENTS: Middle Eastern PE Producer Announces June Shipment Offers To Southeast Asia Market, Highlights Factors Behind Price Adjustments
NewsSSESSMENTS: PE, PP Price Trend In Indonesia At A Polar Opposite With Demand
PlantsSSESSMENTS: Malaysia’s Lotte Chemical Titan To Conduct Maintenance At HDPE Plant
Local/localized PE offers on FD basis, excluding VAT (except in 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 Blow Moulding | Price List | MYR | 3,480 | 803 | 30 Days Credit Term | Malaysia |
| Thailand | HDPE Blow Moulding | Offer Received | THB | 26,500 | 825 | Cash In Advance | Thailand |
| Malaysia | HDPE Film | Offer Received | MYR | 3,300 | 761 | 30 Days Credit Term | Malaysia |
| Malaysia | HDPE Film | Price List | MYR | 3,400 | 784 | 30 Days Credit Term | Malaysia |
| Malaysia | HDPE Film | Offer Given | MYR | 3,400 | 784 | 30 Days Credit Term | Malaysia |
| Philippines | HDPE Film | Offer Received | PHP | 50,000 | 887 | Cash In Advance | Philippines |
| Malaysia | HDPE Film | Offer Given | THB | 26,500 | 825 | Cash In Advance | Thailand |
| Thailand | HDPE Film | Offer Given | THB | 27,000 | 841 | Cash In Advance | Thailand |
| Thailand | HDPE Film | Offer Received | THB | 26,500 | 825 | Cash In Advance | Thailand |
| Thailand | HDPE Film | Purchased | THB | 26,500 | 825 | Cash In Advance | Thailand |
| Malaysia | LDPE Film | Offer Given | MYR | 4,000 | 923 | 30 Days Credit Term | Malaysia |
| Malaysia | LDPE Film | Price List | MYR | 4,050-4,150 | 934-957 | 30 Days Credit Term | Malaysia |
| Malaysia | LDPE Film | Offer Given | THB | 31,000-31,500 | 965-981 | Cash In Advance | Thailand |
| Thailand | LDPE Film | Offer Received | THB | 31,250 | 973 | Cash In Advance | Thailand |
| Thailand | LDPE Film | Purchased | THB | 31,250 | 973 | Cash In Advance | Thailand |
| Malaysia | LLDPE Film C4 | Offer Received | MYR | 2,890 | 667 | 30 Days Credit Term | Malaysia |
| Malaysia | LLDPE Film C4 | Offer Received | MYR | 3,100 | 715 | 30 Days Credit Term | Malaysia |
| Philippines | LLDPE Film C4 | Offer Received | PHP | 50,000 | 887 | Cash In Advance | Philippines |
| Malaysia | LLDPE Film C4 | Offer Given | THB | 26,500 | 825 | Cash In Advance | Thailand |
| Thailand | LLDPE Film C4 | Offer Given | THB | 27,000 | 841 | Cash In Advance | Thailand |
| Thailand | LLDPE Film C4 | Offer Received | THB | 26,500 | 825 | Cash In Advance | Thailand |
| Thailand | LLDPE Film C4 | Purchased | THB | 26,500 | 825 | Cash In Advance | Thailand |
Import PE offers on LC at sight, CIF Main Port basis
| Origin | Product | Transaction Type | Offers (USD/ton) | Delivery Country |
|---|
| Southeast Asia | HDPE Blow Moulding | Offer Received | 760 | Myanmar |
| Southeast Asia | HDPE Blow Moulding | Offer Received | 780 | Philippines |
| Middle East | HDPE Film | Offer Given | 750-760 | Malaysia |
| Middle East | HDPE Film | Sold | 745-755 | Malaysia |
| North America | HDPE Film | Offer Received | 740 | Myanmar |
| Southeast Asia | HDPE Film | Offer Received | 770 | Myanmar |
| Southeast Asia | HDPE Film | Offer Received | 780 | Philippines |
| Middle East | LDPE Film | Offer Given | 850 | Malaysia |
| Middle East | LDPE Film | Purchased | 800 | Malaysia |
| Southeast Asia | LDPE Film | Offer Received | 880-890 | Myanmar |
| Southeast Asia | LDPE Film | Offer Received | 900 | Philippines |
| Middle East | LLDPE Film C4 | Offer Given | 750 | Malaysia |
| Middle East | LLDPE Film C4 | Sold | 745 | Malaysia |
| Middle East | LLDPE Film C4 | Purchased | 710 | Malaysia |
| North America | LLDPE Film C4 | Purchased | 700 | Malaysia |
| Southeast Asia | LLDPE Film C4 | Offer Received | 780 | Myanmar |
Tags: Asia Pacific,English,PE,SEA,Weekly
Published on May 14, 2020 3:21 PM (GMT+8)
Last Updated on May 20, 2020 10:58 PM (GMT+8)
