An Australian trader voiced out to SSESSMENTS.COM that considering the current market situation due to the Coronavirus, Middle Eastern producers will likely push more PE cargoes to China and the Asia Pacific market. This week, offers for HDPE Blow Moulding from a Thai PE producer to Australia decreased by $40/ton compared to last week’s level. While for HDPE Pipe Black (100), market talks have it that the offers from a Middle Eastern PE producer are available at $880/ton on LC at sight, CIF Australia Main Port basis, moved down by $30/ton compared to the same period.
As for demand, the Coronavirus outbreak continues to drag down Australia PE demand. Moreover, with the lockdown in a big market like India and several Southeast Asian countries, the trader opined that Middle Eastern PE producers will most likely try to push more PE cargoes to China and Asia Pacific market. Hence, in the near term, PE prices will remain soft, while supply will remain sufficient, as stated to SSESSMENTS.COM.
