SSESSMENTS.COM was informed that fresh PE offers from the leading Philippines polyolefins producer surfaced with adjustments. On June 5, a converter in the country reported that offers for HDPE Film and LLDPE Film C4 from the producer increased by PHP1,000/ton ($20/ton) and PHP2,000/ton ($40/ton), respectively compared to last week. Offers for both grades now stand at PHP52,000/ton ($1,041/ton) on cash, FD Philippines basis and including 12% VAT. According to the converter, the producer adjusted up offers for both grades due to higher ethylene prices. The converter commented that even before the adjustments, offers from the producer are already too high. Hence, the current offers will be unworkable.
For imports, the converter received offers for mLLDPE C6 from a US producer for June shipment at $60/ton higher compared to a month earlier. Meanwhile, offers from the leading Saudi polyolefins producer for LLDPE Film C4 remain stable at last week’s level, at $820/ton on LC at sight, CIF Manila Port. Pertaining to the production activity, the converter told SSESSMENTS.COM that the factory is still running at a low rate, 50% of the normal capacity. The production rate actually increased by 15% compared to last week. At the current production rate, the converter is unable to fulfil all orders from the customers but also unable to increase the production rate further due to labor shortage stemming from transportation issues. “Only 20% of transportation is operating now, hence, not all workers can go back to work,” the converter said.
The converter further mentioned that the situations seem par for the course because this week is just the first week of General Community Quarantine (GCQ) in Metro Manila. The market condition is expected to gradually improve in the following weeks, the converter opined to SSESSMENTS.COM.
