An Australian trader opined to SSESSMENTS.COM that the pricing outlook for import PE and PP cargoes hinges on production cost. Compared to last week, the offers for import Singaporean PP Block Copolymer to the Australia market increased by $50/ton standing at $1,080/ton. Following the increases, the trader submitted bids at $60/ton lower from the initial offer level citing that another Singaporean producer is offering import PP Block Copolymer cargoes at $1,005/ton. However, the bids were rejected by the producer. The trader stated that the offers for Singaporean PP Block Copolymer at $1,050/ton also increased compared to June shipment, yet there is no exact amount revealed. All offers on LC at sight, CIF Australia Main Port basis
For import LDPE Film cargoes of Singapore origin, SSESSMENTS.COM was informed that the offers are $70/ton higher compared to last month. While for US LLDPE Film C4, the offers recorded at $870/ton on LC at sight, CIF Australia Main Port basis, and there is no price comparison available. The trader stated that the company is still waiting for fresh HDPE Pipe offers. Currently, HDPE Pipe supply in Australia is limited as a local producer is focusing the production on HDPE Blow Blowing that is used for dairy products packaging stemming from the limited availability of feedstock.
Initially, the Australian government planned to allow a maximum of 50 persons per gathering. However, the government cancelled the plan to ease the social distancing rules as the number of new COVID-19 cases increases to above 20 per day. Despite the market situation, the trader opined to SSESSMENTS.COM that PE and PP suppliers will most likely maintain the offers firm citing due to the higher production cost as feedstock prices remain high.
