An Indonesian trader explained to SSESSMENTS.COM regarding the allocation for import PE cargoes of Qatar origin. On a weekly comparison, August shipment offers for import PE cargoes across all grades from a Qatari producer captured higher between $15-35/ton. In detail, the offers for HDPE Film posted an increase of $15/ton while LDPE Film and LLDPE Film C4 offers surged by $35/ton. The trader was informed that the producer’s allocation will be limited stemming from the technical issue at the producer’s plant in May which led to a force majeure on PE supply, especially for HDPE Film and LLDPE Film C4. When the problem happened, the producer was still receiving orders. Hence, the shipment for June was delayed to July, and July shipment is delayed to August. However, the producer assures that the cargoes for September shipment will be delivered on time although the allocation will be very limited as the producer is still struggling in clearing the backlogs. The producer also stated that the allocation will be back to normal from August onwards.
Pertaining to the market response, the trader believes that the current offer levels will be deemed unworkable and LLDPE Film C4 offers should have back to $860/ton as buyers’ acceptance is around that level. However, the offers will most likely be kept around the current level as the producer has no inventory pressure and not in a rush to move cargoes. So far, SSESSMENTS.COM was told that buyers are yet to give responses as most of them are waiting for other suppliers to announce new offers. While for US cargoes, the trader stated that there is no allocation for this week since last week’s offers at $800/ton for LLDPE Film C4 with cargoes available at Port Klang, Malaysia was deemed unworkable.
