A global trading house reported to SSESSMENTS.COM that the gap between bids submitted by buyers and PE offers from Saudi to Indonesia was huge. At the beginning of the week, the trader informed that offers for HDPE Film and LLDPE Film C4 of this origin dropped by $50/ton compared to April shipment offers. The allocation for HDPE Film was cut between 20-30% while for LLDPE Film C4 by 50%. However, as the week progressed, only some deals were concluded at and between $10-20/ton lower than the initial offer levels for a small volume. Therefore, despite the reduced allocation, the cargoes have not sold out yet.
Although offers were adjusted down, some buyers submitted bids for HDPE Film and LLDPE Film C4 at $200/ton and $210/ton respectively lower than the initial offer levels. The trader told SSESSMENTS.COM that the bids were rejected. Buyers cited that the reasons for such bids are the three-month-long lead time, the drops in crude oil prices, and PE price is in a downtrend. Additionally, market talks have it that LLDPE Film C4 cargoes from the same producer were sold at $650/ton on LC at sight, CIF Indonesia main port basis with shipment from Port Klang, Malaysia.
For PP, SSESSMENTS.COM was informed that a Saudi producer had no offers to Indonesia as the producer prefered to move cargoes to China and other markets due to better margin and demand. Meanwhile, the number of inquiries from buyers was high. According to the trader, PP offers from Middle Eastern suppliers to Indonesia are scarce lately.
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