According to market sources report to SSESSMENTS.COM, a Middle Eastern PE producer disregarded the current international market trend. In comparison to a week earlier, the offers for import PE cargoes across all grades from a Middle Eastern producer to Southeast Asia market were kept stable citing that the company is not in a rush to sell and still focusing on the backlogs. Sources stated that if buyers are submitting orders, it will directly be included for the July shipment. Further added, July is still three weeks from now, and there is always a possibility for the offers to change weeks ahead. As such, it will be a bit risky and too early for customers to place orders for July shipment. Hence, the producer is not in a rush to sell.
Regarding the demand, sources stated that Indonesia and Malaysia market is still rather slow after the Eid Al-Fitr holiday. Thus, both Indonesian and Malaysian customers are still hesitant in making procurements due to the higher offers which also led to limited transactions. Sources opined to SSESSMENTS.COM that the price increment will most likely only be workable to Vietnam as the market situation in the country is relatively better compared to the other Southeast Asian countries.
Looking ahead, market sources expressed an opinion to SSESSMENTS.COM that PE prices expected to remain stable in the near term. However, market players have to monitor closely the development of the China market citing that the intensified tension between the US and China will lead to market volatility.
