Philippines market participants informed SSESSMENTS.COM on the adjustment on local PE offers in the country and demand condition after the market reopened. On a weekly comparison, local PE offers from the leading Philipines polyolefins producer increased between PHP1,000-2,000/ton ($20-40/ton) depending on the payment terms following the uptrend in feedstock prices. However, the allocation is limited as the producer has sold a big volume to China market at the end of last month, and the containers are still stranded in China port. As such, currently, the producer is facing a container shortage.
Demand-wise, after more than two-month-long under the lockdown, the government decided to allow some businesses including factories to reopen since June 1. As such, an improvement was seen for PE demand in the country as buyers have started to replenish materials. However, the current demand could not be categorized as strong yet as the lockdown in Metro Manila was just lifted last week. Moreover, only some manufacturers have resumed production, SSESSMENTS.COM was told.
