A marketing arm of a Middle Eastern PE producer shared with SSESSMENTS.COM on the latest adjustment of import PE offers to Indonesia and Malaysia. According to the source, offers for import Middle Eastern PE offers only slightly increased this week as the demand condition in these countries is not strong yet. Compared to last week, offers for HDPE Film increased by $10/ton on the high-end and $30/ton on the low-end of the price range. Some Malaysian buyers submitted bids at $20/ton lower than the initial offer level at $760/ton on LC at sight, CIF Malaysia Main Port basis, however, so far, no deals concluded yet. The Middle Eastern producer is still trying to sell the cargoes at the initial level as the supply for HDPE Film in Malaysia is quite tight due to the upcoming maintenance at the local producer’s HDPE plant. While for LDPE Film, the offers remain unchanged from last week. As for LLDPE Film C4, current offers are stable on the high-end and $10/ton higher at the low-end of the price range available last week. The source stated that the negotiation room for these PE offers remains open citing that the producer will consider bids received from serious buyers.
As mentioned before, the overall PE demand in Indonesia and Malaysia is not strong yet. However, the demand for HDPE Film is considered healthy compared to other PE grades as some traders are placing orders within this week. Further explained, most inquiries received from traders in Indonesia and Vietnam; they placed some orders in anticipation of higher prices in the near term. While for converters, most of them still have sufficient inventory on hand. Likewise in Malaysia, converters are not in a hurry to make procurements as orders for the finished products are not fully recover yet. On the supply side, the allocation for LLDPE Film C4 remains tight due to the maintenance at the producers’ end. Looking ahead, the source opined to SSESSMENTS.COM that pricing outlook for PE market in Southeast Asia will depend on demand movement. As for now, firm feedstock prices should be able to support PE prices.
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