Market sources reported to SSESSMENTS.COM that the July shipment offers from Middle Eastern producers started to surface in the Asia market. In general, the offers for HDPE Film and LLDPE Film C4 were between $40-100/ton higher on the monthly comparison. While on a weekly comparison, July shipment offers for import PE cargoes from Middle Eastern producers were hiked between $10-50/ton. Sources also added an increment of $100/ton compared to the previous two months recorded for Middle Eastern HDPE Film and LLDPE Film C4.
To the China market, the offers for HDPE Film and LDPE Film from Middle Eastern producers recorded between $850-920/ton and $915-940/ton respectively. While for LLDPE Film C4, SSESSMENTS.COM noted that the offers are available between $800-825/ton. Despite the current uptrend in import PE offers, market sources stated that buying sentiment is flat as buyers are showing resistance towards the high prices. However, there were still some deals that managed to be concluded at $850/ton for HDPE Film and $800/ton for LLDPE Film C4. All on LC at sight, CIF China Main Port Basis.
In Southeast Asia, sources informed SSESSMENTS.COM that the offers for HDPE Film and LLDPE Film C4 from Middle Eastern producers standing at $850-900/ton and $810-880/ton respectively. For LDPE Film, the offers are available at $880/ton. Following the announcement, an Indonesian converter submitted bids at $820-830/ton for LLDPE Film C4 but rejected by the suppliers. The converter was left dazed as the bids level was not too low and believed it was still reasonable. As such, the converter will attempt to re-submit the bids again. However, another converter in the country revealed that the company purchased Middle Eastern HDPE Film and LLDPE Film C4 at the initial offer level as the producer is unwilling to give room for negotiation. Whereas in Malaysia, a converter submitted bids at $790/ton for LLDPE Film C4 and is still waiting for the response from the supplier. Regarding the demand, Vietnamese sources stated that the demand remains weak affected by the weather condition. While an Indonesian converter reported that the demand for plastic bags is gradually improving, although the improvement is limited.
Looking ahead, market sources expressed an opinion to SSESSMENTS.COM that import PE offers may remain firm as supported by stronger crude oil and monomer prices. However, converters will most likely be showing resistance towards the higher prices due to slow demand for their finished products. As such, done deals might be limited and concluded lower from the initial offer levels.
