A converter in the Philippines informed SSESSMENTS.COM that the company has received offers for HDPE Film cargoes from a Malaysian producer with a notable reduction. As compared to March, the latest offers for HDPE Film from the producer surfaced with a reduction of $120/ton. Despite the significant price cut, the converter is still hesitating to procure some materials as the producer mentioned that customers cannot ask for a delay in shipment; cargoes shipment has to be in May. On the other hand, the converter is currently holding sufficient stocks amid slow finished products demand.
Further explained by the source, at the moment, the factories are still running at 25% from the normal capacity and only 25% of the labours can continue to work. Until the time of publication, there is no official announcement pertaining to the extension of the lockdown in the Philippines. However, since the number of new cases per-day is still high, above 200 cases in a day, the government is planning to extend the lockdown until the middle of May. The converter opined to SSESSMENTS.COM that the Coronavirus pandemic may not be over in May, but probably the things would start to get better in June.
For April shipment, the producer reduced the offer for HDPE Film and LDPE Film to Indonesia market by $20/ton and $110/ton respectively. To the Philippines, April shipment offers for HDPE Film from the producer down by $40/ton. For the local market, SSESSMENTS.COM noted that offers for HDPE Film and LDPE Film down by MYR200/ton ($46/ton). All compared to March’s level.
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