A Malaysian polyolefins producer is questioning the workability of August shipment offers to the Southeast Asia market, SSESSMENTS.COM was told. In comparison to a month earlier, a Malaysian polyolefins producer announced August shipment offers to the Philippines and Vietnam market with hefty increases of $100/ton. For PP Homo Raffia, the offers are available at $1,020/ton on LC at sight, CIF Main Port Basis. However, the producer expressed the possibility for Vietnamese buyers to ask for $980/ton-level since the current offers will most likely be deemed unworkable. Moreover, supply in the market is getting better while demand in Southeast Asia remains relatively slow.
Similarly for PE, the producer is also unsure if the offers for HDPE Film at $950/ton will be workable. At the moment, SSESSMENTS.COM was informed that the producer is still collecting feedback from the market to assess whether the offers need to be adjusted lower or not, in order to achieve target sales. To the China market, so far, the producer has managed to conclude deals for 2,000 tons of HDPE Film at $950/ton. However, since the producer heard that import Thai HDPE Film cargoes were concluded at $970-980/ton-level to China market, the producer is considering to increase offers to China market further. All offers on LC at sight, CIF Main Port Basis.
The producer opined to SSESSMENTS.COM that PE prices should have maintained firm as supply in the market is still relatively tight. While for PP, the sustainability of the current price trend is questioned as supply is getting better. However, the producer predicts that the possibility for August shipment offers to decline is zero, yet lower levels might be seen for September shipment offers. Further added, the producer’s allocation for both PE and PP cargoes for August shipment is normal.
