A Thailand-based trader revealed to SSESSMENTS.COM that import PE prices in Southeast Asia market continue to rally, bolstered by strong gains in crude oil futures. As compared to last week, the trader initiated a price increase of between $30-50/ton for Thailand HDPE Film and LLDPE Film C4 to the Southeast Asia market. The uptrend in the international market amid a relentless rally in crude oil prices was cited as a major ground behind the price adjustment. As for PP resins, the trader pointed out that current import offers for from Thailand producers are hovering above 1,000/ton-level, which deemed too high to be workable.
The trader added that most traders are currently attempting to push offers for HDPE Film and LLDPE Film C4 grades above $950/ton-level to its customer, but receiving a lukewarm response from customers in Southeast Asia. Done deals remain limited as some buyers in the region continue to resist the higher offer levels. To date, transactions are mostly concluded to Indonesia due to relatively tight supply in the local market, particularly for LLDPE grades. SSESSMENTS.COM was informed that the leading Indonesian polyolefins producer has been facing technical problems at their LLDPE plant, resulting in supply shortage in the market.
For the outlook, the trader voiced out to SSESSMENTS.COM that import PE prices in Southeast Asia would likely remain firm in the days to come, backed by rising feedstock prices.
