Market sources shared with SSESSMENTS.COM that Indonesia’s polyethylene (PE) prices have formed the low-end of the overall import prices in China and Southeast Asia markets. For the past few weeks, the leading Indonesian polyolefins producer has reportedly diverted their allocation to the export market as sentiment in the domestic market is leaning towards a bearish undertone amid pessimistic macroeconomic conditions. The producer has also been aggressively pushing cargoes at attractive prices in a bid to boost sales and to gain market shares. Between July 20-24, import HDPE Film offers of Middle East origin in Asia ranged between $920-980/ton. During the same week, HDPE Film cargoes from the leading Indonesian polyolefins producer was offered between $910-930/ton, all on LC at sight, CIF main ports basis.
Comments by market players on the subject as follows:
“Market talks have it that Chinese re-export converters were offering leading polyolefins producer’s materials to the Vietnam market last week. As for LLDPE Film C4, sellers’ offers were available at $920/ton on LC at sight, CIF Vietnam Main Port basis. In response, most buyers in the country submitted a bid between $30-40/ton lower than the initial offer level. However, most Chinese sellers were unwilling to entertain requests with steep discounts,” a Vietnam-based trader reported to SSESSMENTS.COM on July 21.
A trader in China commented, “August shipment offers for HDPE Film from the leading Indonesian polyolefins producer surfaced in the China market with a reduction of $10/ton as compared to last week’s level, captured at $910/ton on LC at sight, CIF Main Port basis. However, we regarded the offer level as high and unworkable, considering current offers for localized US HDPE Film cargoes are available at CNY7,600-level. Therefore, we will not proceed with any purchases.”
“Last week, the leading Indonesian producer announced lower offers for HDPE Film to the China market. At first, the producer offered HDPE Film cargoes at $950/ton on LC at sight, CIF China Main Port basis. Upon receiving negative responses from buyers, the producer, in turn, revised down the offers by $30/ton as compared to the initial offer level. Meanwhile, no fresh import offers for LLDPE Film C4 grades available so far, ” another chinese trader informed SSESSMENTS.COM on July 22.
“We are planning to terminate the contract with the leading Indonesian polyolefins producer since the producer has yet to provide any compensation for the previous order cancelation for 20,000 tons of LLDPE Film C4 to China. We heard that two global trading houses also intend to terminate the contract with the producer by not taking contract cargoes for August,” a global trading house revealed.
“From the import market, we received import offers for HDPE Film directly from the leading Indonesian polyolefins producer at $930/ton on LC at sight, CIF Vietnam Main Port basis. We noticed no one was willing to secure any allocation as Indonesian origin cargoes are uncommon,” one of the Vietnamese traders reported on July 29.
“For small quantities of purchases, we have been able to clinch a deal for Indonesian HDPE Film cargoes at $915/ton, or at $5/ton lower than the initial offer level. All offers are on LC at sight, CIF Vietnam Main Port basis,” another Vietnamese trader told SSESSMENTS.COM.
“We noted that import HDPE Film prices from the leading Indonesian polyolefins producer is on the low-end of the overall import prices in Southeast Asia markets. This week, our company received offers for the leading Indonesian polyolefins producer’s materials at $920/ton on LC at sight, CIF Philippines Main Port basis, which is the lowest among other Southeast Asia origin cargoes. Other Southeast Asian producers, such as Thailand, are mostly offering HDPE Film cargoes to Southeast Asia market between $950-960/ton-level,” a Philippines-based trader revealed.
