SSESSMENTS.COM noted that the leading US producer’s offers for mLLDPE lag behind market prices. This week, the producer’s offers for mLLDPE C6 to Southeast Asia and Australia market dropped between $10-50/ton on a weekly comparison. However, compared to a fortnight ago, the producer’s offers for cargoes from US plants to Indonesia plunged by $90/ton. Despite the notable reductions, whether the cargoes are from US plant or Singapore plant, the producer’s offers are still at above $900/ton-level, making it way behind other producers’ offers. Currently there is a $300/ton price difference in the market for mLLDPE.
Speaking of other producers, SSESSMENTS.COM was told that the offers for mLLDPE C6 from another US producer to Malaysia declined by $80/ton on a weekly comparison. The deals for the cargoes achieved at the initial offer level at $720/ton on LC at sight, CIF Malaysia Main Port basis. In Indonesia, a converter placed bids for the second US producer’s cargoes at $690/ton with the same payment and delivery term. From a Thai producer, the offers for mLLDPE C6 to Southeast Asia and China market dipped by $20/ton as compared to a week earlier. Thai mLLDPE C6 offers to the China market at $850/ton on LC at sight, CIF China Main Port basis were deemed unattractive by buyers.
At the time of publication, deals remain scarce as the majority of buyers, particularly within the Southeast Asia market, are not showing any interest citing that most of them are not urgently needing the materials yet. On plant news, SSESSMENTS.COM was informed that a Thai PE producer’s old LLDPE plant with a capacity of 400,000 tons/year will be switched to produce mLLDPE C6 starting from April 7 until April 23, 2020.
