- Leading Philippines polyolefins producer adjusted PE offers twice on the week commencing June 22
- PE demand in Southeast Asia region was considered sluggish
- PE prices expected to remain firm in July
In June, SSESSMENTS.COM noted that overall local and import PE prices in Southeast Asia were captured on an uptrend. In Malaysia, a local producer announced June delivery offers for PE cargoes across all grades with an increment of between MYR100-200/ton ($23-47/ton) compared to May delivery. While in Thailand, in the first half of June, following limited supply and firmer feedstock prices, the local PE producers adjusted up offers depending on the grades with a total increment of THB1,000/ton ($32/ton). Despite the price adjustment from producers, traders preferred to maintain a stable offer level to lure buyers. Most traders were offering PE cargoes at THB500/ton ($16/ton) lower than the producers’ price list citing that they still had some volume left from the previous procurements when prices were low. On the week commencing June 15, one of the traders in Thailand decided to offer local HDPE Film and LLDPE Film C4 between THB1,500-2,000/ton ($48-64/ton) lower and at THB1,500/ton ($48/ton) lower for localized Malaysian LDPE Film compared to a local producer’s offers to secure some deals. However, deals remained scarce as buyers only purchased on a need basis. While on the week commencing June 22, a local producer increased local PE offers across all grades by THB1,000/ton ($32/ton) compared to a week earlier. In the Philippines, the leading Philippines polyolefins producer adjusted up local HDPE Film and LLDPE Film C4 between PHP1,000-2,000/ton ($20-40/ton) on the week commencing June 8. On June 24, the producer also announced an upward revision on local PE offers by PHP1,000/ton ($20/ton). However, the next day, on June 25, the producer applied another price increase for local HDPE Film and LLDPE Film C4 between PHP2,000-3,000/ton ($40-60/ton) from the previous price list. Detailed information for Indonesia and Vietnam market is available in MonthlySSESSMENTS of the respective countries.
In the import market, July shipment offers for HDPE Film from a Malaysian polyolefins producer to the Philippines surfaced at $70/ton higher compared to June shipment. However, deals were concluded at $20/ton lower than the initial offer level at $830/ton on LC at sight, CIF Philippines Main Port basis. While for US cargoes, the offers for both HDPE Film and LLDPE Film C4 were between $130-150/ton higher compared to the same period. Although the offers were deemed attractive, buyers were still hesitant to take the cargoes due to the long lead time. On the week commencing June 15, a Malaysian producer had sold all July allocation to the Southeast Asia market. To the Philippines, the producer managed to close deals for HDPE Film at $20/ton lower than the initial offer level at $830/ton on LC at sight, CIF Philippines Main Port basis. While on June 25, July shipment offers from one of the Middle Eastern producers surfaced in the Southeast Asia market. Compared to June shipment, offers for HDPE Film and LLDPE Film C4 increased between $120-140/ton. As for other PE grades, SSESSMENTS.COM’s pricing database showed that at the beginning of June, import offers for US mLLDPE C6 to Malaysia increased by $80/ton as compared to the offer received in early May. While import offers for mLLDPE C6 cargoes of Singapore origin to the Philippines captured at $40/ton higher compared to offers at the end of May.
Despite the slight improvement recorded, the overall PE demand in Southeast Asia was considered sluggish during June. Buyers showed resistance towards the firm PE prices. Moreover, with sufficient inventory on hand, buyers were not in a rush to make procurements. In the Philippines, even though the lockdown in Metro Manila has been lifted as of June 1, the market was not fully resumed yet due to the lack of workforce stemming from limited public transportation as the number of confirmed COVID-19 cases remains high. However, in Malaysia, on the week commencing June 15, some buyers started to replenish materials since the demand for end-products also started to pick up. On the supply side, the availability of PE cargoes in Southeast Asia market was generally limited, especially for local materials. In Thailand, limited supply reported from Thai PTT Public Company Ltd due to maintenance shutdown. The tightness was also reported in the Malaysia market especially for HDPE Film and LLDPE Film C4, SSESSMENTS.COM noted.
On the production sector, market sources revealed to SSESSSMENTS.COM that Thai PTT Public Company Ltd has resumed production at the company’s HDPE plant with a capacity of 300,000 tons/year on June 8 after previously shut on May 25. While the old LLDPE plant with a capacity of 400,000 tons/year was shut on June 4 due to technical issues and has resumed production on the week commencing June 15. On June 25, Malaysia Lotte Chemical Titan also resumed production at the company’s 220,000 tons/year HDPE plant, which was shut previously on the week commencing June 8 for maintenance purposes.
For the outlook, considering the uptrend in feedstock prices, some Southeast Asian market players believe that both local and import PE prices will remain firm in July. As PE demand is predicted to remain sluggish on the back of slow finished product demand, buyers will most likely show stiff resistance toward the offers, as stated to SSESSMENTS.COM. Additionally, the Philippines government would not loosen the restrictions for public transportation in the country as the number of Coronavirus cases remains high.
Transactions for local/localized PE between June 1 to June 5 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 Country |
|---|
| Malaysia | HDPE Film | Offer Received | MYR | 3,440 | 803 | 30 Days Credit Term | Malaysia |
| Philippines | HDPE Film | Offer Received | PHP | 51,000-52,000 | 913-931 | Cash In Advance | Philippines |
| Thailand | HDPE Film | Offer Given | THB | 28,000-30,000 | 905-970 | Cash In Advance | Thailand |
| Thailand | HDPE Film | Offer Received | THB | 29,000 | 938 | Cash In Advance | Thailand |
| United Arab Emirates | HDPE Film | Offer Given | THB | 27,000 | 873 | Cash In Advance | Thailand |
| Malaysia | LDPE Film | Offer Received | MYR | 3,980-4,310 | 929-1006 | 30 Days Credit Term | Malaysia |
| Southeast Asia | LDPE Film | Offer Received | PHP | 64,000 | 1,146 | Cash In Advance | Philippines |
| Malaysia | LDPE Film | Offer Received | THB | 30,500 | 986 | Cash In Advance | Thailand |
| Malaysia | LDPE Film | Offer Given | THB | 32,000-32,500 | 1035-1051 | Cash In Advance | Thailand |
| Malaysia | LDPE Film | Sold | THB | 32,000-32,500 | 1035-1051 | Cash In Advance | Thailand |
| Southeast Asia | LDPE Film | Sold | THB | 32,500 | 1,051 | Cash In Advance | Thailand |
| Thailand | LDPE Film | Offer Received | THB | 33,000-33,500 | 1067-1083 | Cash In Advance | Thailand |
| Thailand | LDPE Film | Offer Given | THB | 34,000 | 1,099 | Cash In Advance | Thailand |
| Malaysia | LLDPE Film C4 | Offer Received | MYR | 3,390 | 791 | 30 Days Credit Term | Malaysia |
| Philippines | LLDPE Film C4 | Offer Received | PHP | 50,000-52,000 | 896-931 | Cash In Advance | Philippines |
| Thailand | LLDPE Film C4 | Offer Given | THB | 28,000-30,000 | 905-970 | Cash In Advance | Thailand |
| Thailand | LLDPE Film C4 | Offer Received | THB | 29,000 | 938 | Cash In Advance | Thailand |
Transactions for import PE between June 1 to June 5 on LC at sight, CIF Main Port basis
| Origin | Product | Transaction Type | Offers (USD/ton) | Delivery Country |
|---|
| Middle East | HDPE Film | Offer Given | 780 | Malaysia |
| 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 | 840-850 | Malaysia |
| Middle East | LDPE Film | Offer Received | 920 | Myanmar |
| 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 |
| Middle East | LLDPE Film C4 | Offer Given | 770 | Malaysia |
| Middle East | LLDPE Film C4 | Offer Given | 770 | Philippines |
| Middle East | LLDPE Film C4 | Sold | 760-770 | Philippines |
| Middle East | LLDPE Film C4 | Offer Received | 820 | Philippines |
| Middle East | LLDPE Film C4 | Offer Received | 810 | Thailand |
| Middle East | LLDPE Film C4 | Purchased | 810 | Thailand |
| North America | LLDPE Film C4 | Offer Received | 750-780 | Malaysia |
| North America | LLDPE Film C4 | Purchased | 750 | Malaysia |
| Southeast Asia | LLDPE Film C4 | Sell Idea | 850-900 | Southeast Asia |
| North America | mLLDPE C6 | Offer Received* | 800-820 | Malaysia |
| North America | mLLDPE C6 | Purchased* | 800 | Malaysia |
| North America | mLLDPE C6 | Offer Received | 800 | Philippines |
Description: *Offers on EXW basis
Transactions for local/localized PE between June 8 to June 12 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 Country |
|---|
| Malaysia | HDPE Film | Sold | MYR | 3,580 | 835 | Cash In Advance | Malaysia |
| Philippines | HDPE Film | Offer Received | PHP | 52,000-53,000 | 931-949 | Cash In Advance | Philippines |
| Philippines | HDPE Film | Offer Received | PHP | 54,000 | 967 | 60 Days Credit Term | Philippines |
| Thailand | HDPE Film | Offer Given | THB | 28,000-30,000 | 905-970 | Cash In Advance | Thailand |
| Thailand | HDPE Film | Offer Received | THB | 29,500 | 954 | Cash In Advance | Thailand |
| Philippines | HDPE Pipe (PE 100) | Offer Received | PHP | 54,000-55,000 | 967-985 | Cash In Advance | Philippines |
| Malaysia | LDPE Film | Offer Received | MYR | 3,980 | 928 | 30 Days Credit Term | Malaysia |
| Malaysia | LDPE Film | Price list | MYR | 4,250 | 991 | 30 Days Credit Term | Malaysia |
| Malaysia | LDPE Film | Offer Received | THB | 31,500-32,000 | 1018-1035 | Cash In Advance | Thailand |
| Malaysia | LDPE Film | Offer Given | THB | 33,000-33,500 | 1067-1083 | Cash In Advance | Thailand |
| Thailand | LDPE Film | Offer Given | THB | 32,500-33,000 | 1051-1067 | Cash In Advance | Thailand |
| Thailand | LDPE Film | Offer Received | THB | 33,500-34,000 | 1083-1099 | Cash In Advance | Thailand |
| Malaysia | LLDPE Film C4 | Sold | MYR | 3,780 | 882 | Cash In Advance | Malaysia |
| Philippines | LLDPE Film C4 | Offer Received | PHP | 52,000-53,000 | 931-949 | Cash In Advance | Philippines |
| Philippines | LLDPE Film C4 | Offer Received | PHP | 54,000 | 967 | 60 Days Credit Term | Philippines |
| Thailand | LLDPE Film C4 | Offer Given | THB | 28,000-30,000 | 905-970 | Cash In Advance | Thailand |
| Thailand | LLDPE Film C4 | Offer Received | THB | 29,500 | 954 | Cash In Advance | Thailand |
Transactions for import PE between June 8 to June 12 on LC at sight, CIF Main Port basis
| Origin | Product | Transaction Type | Offers (USD/ton) | Delivery Country |
|---|
| Middle East | HDPE Film | Offer Given | 830-850 | Malaysia |
| Middle East | HDPE Film | Purchased | 790 | Malaysia |
| North America | HDPE Film | Purchased | 810* | Malaysia |
| North America | HDPE Film | Offer Received | 790 | Philippines |
| Southeast Asia | HDPE Film | Offer Received | 850** | Philippines |
| Southeast Asia | HDPE Film | Purchased | 830** | Philippines |
| Middle East | LDPE Film | Offer Given | 870-880 | Malaysia |
| Southeast Asia | LDPE Film | Offer Given | 930-940 | Thailand |
| Middle East | LLDPE Film C4 | Offer Given | 800 | Malaysia |
| Middle East | LLDPE Film C4 | Purchased | 780 | Malaysia |
| Middle East | LLDPE Film C4 | Sold | 780-800 | Malaysia |
| North America | LLDPE Film C4 | Offer Received | 790-800 | Philippines |
| North America | LLDPE Film C4 | Purchased | 755-770 | Malaysia |
Description: *Offers on EXW, Port Klang, Malaysia, **July shipment offers
Transactions for export PE between June 8 to June 12 on LC at sight, FOB Philippines basis
| Origin | Product | Transaction Type | Offers (USD/ton) |
|---|
| Philippines | HDPE Film | Offer Received | 900 |
| Philippines | LLDPE Film C4 | Offer Received | 900 |
Transactions for local/localized PE between June 15 to June 19 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 Country |
|---|
| Malaysia | HDPE Film | Offer Given | MYR | 3,580-4,310 | 835-1006 | 30 Days Credit Term | Malaysia |
| Philippines | HDPE Film | Offer Received | PHP | 52,000-53,000 | 931-949 | Cash In Advance | Philippines |
| Philippines | HDPE Film | Offer Received | PHP | 54,000 | 967 | 60 Days Credit Term | Philippines |
| Singapore | HDPE Film | Offer Given | THB | 30,000 | 970 | Cash In Advance | Thailand |
| Thailand | HDPE Film | Offer Received | THB | 29,500-30,000 | 954-970 | Cash In Advance | Thailand |
| Thailand | HDPE Film | Offer Given | THB | 28,000-30,500 | 905-986 | Cash In Advance | Thailand |
| Thailand | HDPE Film | Sold | THB | 28,000 | 905 | Cash In Advance | Thailand |
| Malaysia | LDPE Film | Offer Given | MYR | 4,110-4,250 | 959-992 | 30 Days Credit Term | Malaysia |
| Malaysia | LDPE Film | Offer Given | MYR | 4,210 | 982 | Cash In Advance | Malaysia |
| Malaysia | LDPE Film | Offer Given | THB | 32,500-33,000 | 1051-1067 | Cash In Advance | Thailand |
| Malaysia | LDPE Film | Sold | THB | 32,500 | 1,051 | Cash In Advance | Thailand |
| Thailand | LDPE Film | Offer Received | THB | 34,000 | 1,099 | Cash In Advance | Thailand |
| Malaysia | LLDPE Film C4 | Offer Given | MYR | 4,000 | 933 | Cash In Advance | Malaysia |
| Philippines | LLDPE Film C4 | Offer Received | PHP | 52,000-53,000 | 931-949 | Cash In Advance | Philippines |
| Philippines | LLDPE Film C4 | Offer Received | PHP | 54,000 | 967 | 60 Days Credit Term | Philippines |
| Thailand | LLDPE Film C4 | Offer Received | THB | 29,500-30,000 | 954-970 | Cash In Advance | Thailand |
| Thailand | LLDPE Film C4 | Offer Given | THB | 28,000-30,500 | 905-986 | Cash In Advance | Thailand |
| Thailand | LLDPE Film C4 | Sold | THB | 28,000 | 905 | Cash In Advance | Thailand |
Transactions for import PE between June 15 to June 19 on LC at sight, CIF Main Port basis
| Origin | Product | Transaction Type | Offers (USD/ton) | Delivery Country |
|---|
| Southeast Asia | HDPE Blow Moulding | Sold | 860 | Philippines |
| Middle East | HDPE Film | Offer Received | 870 | Malaysia |
| Middle East | HDPE Film | Offer Given | 860-870 | Malaysia |
| Middle East | HDPE Film | Bid Received | 820-830 | Malaysia |
| North America | HDPE Film | Offer Received | 870 | Malaysia |
| Southeast Asia | HDPE Film | Offer Received | 860 | Philippines |
| Southeast Asia | HDPE Film | Sold | 855 | Philippines |
| Southeast Asia | HDPE Film | Sold | 830 | Southeast Asia |
| Central & East Europe | LDPE Film | Offer Given | 960-970 | Thailand |
| Middle East | LDPE Film | Offer Given | 890 | Malaysia |
| Middle East | LDPE Film | Offer Received | 880 | Philippines |
| Middle East | LDPE Film | Offer Given | 880 | Philippines |
| Middle East | LLDPE Film C4 | Offer Given | 850-860 | Malaysia |
| Middle East | LLDPE Film C4 | Bid Received | 800-820 | Malaysia |
| Middle East | LLDPE Film C4 | Offer Received | 840 | Philippines |
| Middle East | LLDPE Film C4 | Offer Given | 840 | Philippines |
| North America | LLDPE Film C4 | Offer Received | 830 | Malaysia |
| Southeast Asia | LLDPE Film C4 | Offer Received | 850 | Philippines |
| Southeast Asia | LLDPE Film C4 | Sold | 845 | Philippines |
| North America | mLLDPE C6 | Offer Received | 870 | Malaysia |
Transactions for export PE between June 15 to June 19 on LC at sight, FOB Philippines basis
| Origin | Product | Transaction Type | Offers (USD/ton) |
|---|
| Philippines | LLDPE Film C4 | Purchased | 840 |
Transactions for local/localized PE between June 22 to June 26 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 Country |
|---|
| Philippines | HDPE Blow Moulding | Offer Received | PHP | 53,000 | 949 | Cash In Advance | Philippines |
| Malaysia | HDPE Film | Price List | MYR | 3,580 | 835 | 30 Days Credit Term | Malaysia |
| Philippines | HDPE Film | Offer Received | PHP | 53,000 | 949 | Cash In Advance | Philippines |
| Singapore | HDPE Film | Offer Given | THB | 30,000 | 970 | Cash In Advance | Thailand |
| Singapore | HDPE Film | Sold | THB | 29,500 | 954 | Cash In Advance | Thailand |
| Thailand | HDPE Film | Offer Given | THB | 29,500-31,500 | 954-1018 | Cash In Advance | Thailand |
| Thailand | HDPE Film | Offer Received | THB | 30,500 | 986 | Cash In Advance | Thailand |
| Thailand | HDPE Film | Sold | THB | 29,500 | 954 | Cash In Advance | Thailand |
| Malaysia | LDPE Film | Offer Given | MYR | 4,110-4,250 | 959-992 | 30 Days Credit Term | Malaysia |
| Malaysia | HDPE Film | Price List | MYR | 4,250 | 992 | 30 Days Credit Term | Malaysia |
| Malaysia | LDPE Film | Offer Given | THB | 32,500 | 1,051 | Cash In Advance | Thailand |
| Malaysia | LDPE Film | Sold | THB | 32,000-32,500 | 1035-1051 | Cash In Advance | Thailand |
| Thailand | LDPE Film | Offer Given | THB | 35,000 | 1,132 | Cash In Advance | Thailand |
| Thailand | LDPE Film | Offer Received | THB | 34,000 | 1,099 | Cash In Advance | Thailand |
| Malaysia | LLDPE Film C4 | Offer Given | MYR | 4,000 | 933 | Cash In Advance | Malaysia |
| Philippines | LLDPE Film C4 | Offer Received | PHP | 52,000-53,000 | 931-949 | Cash In Advance | Philippines |
| Thailand | LLDPE Film C4 | Offer Given | THB | 29,500-31,500 | 954-1018 | Cash In Advance | Thailand |
| Thailand | LLDPE Film C4 | Offer Received | THB | 30,500 | 986 | Cash In Advance | Thailand |
| Thailand | LLDPE Film C4 | Sold | THB | 29,500 | 954 | Cash In Advance | Thailand |
Transactions for import PE between June 22 to June 26 on LC at sight, CIF Main Port basis
| Origin | Product | Transaction Type | Offers (USD/ton) | Delivery Country |
|---|
| Middle East | HDPE Film | Offer Received | 880 | Thailand |
| Southeast Asia | LDPE Film | Price List | 990 | Malaysia |
| Middle East | LLDPE Film C4 | Offer Received | 830 | Malaysia |
| Middle East | LLDPE Film C4 | Bid Given | 790-800 | Malaysia |
| Middle East | LLDPE Film C4 | Sell Idea | 860 | Malaysia |
| Middle East | LLDPE Film C4 | Offer Received | 920 | Philippines |
| Middle East | LLDPE Film C4 | Offer Received | 920-950 | Thailand |
| North America | LLDPE Film C4 | Offer Received | 820-840 | Philippines |
| Southeast Asia | LLDPE Film C4 | Sell Idea | 900* | Southeast Asia |
| North America | mLLDPE C6 | Offer Received | 860 | Malaysia |
| Southeast Asia | mLLDPE C6 | Offer Received | 1,080 | Philippines |
Description: *Sell Idea for August shipment
Transactions for local PE between June 29 to June 30 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 Country |
|---|
| Malaysia | HDPE Blow Moulding | Price List | MYR | 4,040 | 943 | 30 Days Credit Term | Malaysia |
| Philippines | HDPE Blow Moulding | Offer Received | PHP | 56,000 | 1,003 | Cash In Advance | Philippines |
| Malaysia | HDPE Film | Offer Given | MYR | 3,960 | 924 | 30 Days Credit Term | Malaysia |
| Malaysia | HDPE Film | Price List | MYR | 3,960-4,640 | 924-1083 | 30 Days Credit Term | Malaysia |
| Philippines | HDPE Film | Offer Received | PHP | 56,000-57,000 | 1003-1021 | Cash In Advance | Philippines |
| Thailand | HDPE Film | Offer Received | THB | 31,000 | 1,002 | Cash In Advance | Thailand |
| Malaysia | LDPE Film | Offer Given | MYR | 4,390 | 1,024 | 30 Days Credit Term | Malaysia |
| Malaysia | LDPE Film | Price List | MYR | 4,390-4,530 | 1024-1057 | 30 Days Credit Term | Malaysia |
| Thailand | LDPE Film | Offer Received | THB | 34,000 | 1,099 | Cash In Advance | Thailand |
| Malaysia | LLDPE Film C4 | Price List | MYR | 4,270 | 996 | 30 Days Credit Term | Malaysia |
| Malaysia | LLDPE Film C4 | Offer Received | MYR | 4,160 | 971 | 30 Days Credit Term | Malaysia |
| Philippines | LLDPE Film C4 | Offer Received | PHP | 55,000-57,000 | 985-1021 | Cash In Advance | Philippines |
| Thailand | LLDPE Film C4 | Offer Received | THB | 31,000 | 1,002 | Cash In Advance | Thailand |
Transactions for import PE between June 29 to June 30 on LC at sight, CIF Main Port basis
| Origin | Product | Transaction Type | Offers (USD/ton) | Delivery Country |
|---|
| Middle East | LLDPE Film C4 | Offer Received | 920 | Southeast Asia |
| Middle East | LLDPE Film C4 | Purchased | 900-920 | Thailand |
Tags: Asia Pacific,English,Monthly,PE,SEA
Published on July 1, 2020 5:58 PM (GMT+8)
Last Updated on July 1, 2020 6:09 PM (GMT+8)
