SSESSMENTS.COM was informed that an Indonesian trader diverts LLDPE cargoes to the Vietnam market and revealed the reason behind higher offers for US cargoes. Compared to a week earlier, import PE offers of Middle Eastern and US origin generally increased by $20/ton. The trader stated that import LLDPE Film C4 offers from a Middle Eastern producer increased from $850/ton to $870/ton. Similarly, import LLDPE Film C4 offers from a Saudi producer also recorded at $870/ton after price increment. However, the offers deemed unworkable for the Indonesia market. As such, the trader decided to sell the cargoes to the Vietnam market. For import Saudi and US HDPE Film cargoes, the trader purchased the cargoes at $880/ton and managed to sell it at $900/ton. Sources added that Middle Eastern cargoes will be shipped directly from the Middle East, while US cargoes will be shipped from Port Klang, Malaysia. All offers on LC at sight, CIF Main Port basis.
For US LLDPE Film C4, the cargoes are sold at $900/ton with shipment from Port Klang, Malaysia. As explained to SSESSMENTS.COM, the offers for import LLDPE Film C4 cargoes from US producer are higher compared to the other producers as the HS Code belongs to 5% of customs duty just like US mLLDPE grades. The trader stated that for LLDPE Film C4, some only pay 5% of customs duty, and some others have to pay 10%. As for other grades, there are no fresh import offers recorded for LDPE Film. About two weeks ago, the trader received Middle Eastern LDPE Film at$870/ton-level but there were no deals concluded. Additionally, the trader revealed that import US mLLDPE C6 shipped from Port Klang is at $1,200/ton with 5% of customs duty included. While for direct shipment from the US, the offers for US mLLDPE C6 are around $1,140/ton and excluding 5% of customs duty. Offers also on LC at sight, CIF Main Port basis.
