On a monthly comparison, the deals for Middle Eastern PE cargoes in Indonesia showed a price gap of up to three digits. Import PE offers for July shipment from one of the Middle Eastern PE producers has increased by $100/ton for HDPE Film and LLDPE Film C4, as compared to the level for June shipment. For HDPE Film, the producer maintains the offer firm without any room for negotiation. While for LLDPE Film C4, the deals were concluded at $10/ton lower than the initial offer level. Compared to last month’s deals, the HDPE Film and LLDPE Film C4 were concluded at $110/ton and $90/ton higher, respectively. For Southeast Asian cargoes, the converter explained, “We received offers for LLDPE Film C4 of Philippines origin at $900/ton on LC at sight, CIF Indonesia main port basis. However, we were too late to submit the bids and the supplier has sold out all of the allocations,” as stated to SSESSMENTS.COM.
In the local market, the biggest local trading house in the country is also offering at a high level recently, as the company does not have any inventory pressure. While for localized cargoes, in the week commencing June 29 Thai HDPE Film and LLDPE Film C4 are available at IDR13,900,000/ton ($968/ton) on cash, FD basis and excluding 10% VAT. The materials will be delivered in August. Tight supply for Thai cargoes is expected to take place until August since the producer plans to take the 400,000 tons/year LLDPE plant off-line starting from July 20 for maintenance purpose. The limited supply from the producer’s end will lend support for PE price to increase in the future, SSESSMENTS.COM was told.
