A marketing arm of a Middle Eastern producer highlighted the shift in PE prices. This week’s offers for import PE cargoes across all grades from the producer were generally stable on a weekly comparison, except for HDPE Film and LDPE Film. For LDPE Film, offers were adjusted down between $40-60/ton while for HDPE Film edged down by $20-30/ton from last week. Currently, the company is still actively collecting bids as customers still pay less attention to the latest offers. Previously, customers were submitting bids at $650-670/ton-level which was rejected, then the producer counter-offered at $690/ton, and some deals were achieved. However, such a level is no longer available in the market this week. “Recently, prices are changing on a daily basis due to the Coronavirus pandemic. Some low prices might be captured on certain days or only one day and it will disappear the next day,” the source stated to SSESSMENTS.COM.
Speaking of the market, the source informed SSESSMENTS.COM that most converters in Malaysia are still running at 50-60%, and some at 70% from the normal rate. Although the Malaysian government already granted permission to run at a maximum rate, most converters prefer to keep the operating rate around 50-70% to make sure no workers were infected. Moreover, the sales for finished products remains slow.
Pertaining to the outlook, the market is predicted to remain slow as the Coronavirus pandemic still looms over. In terms of logistics, cargoes delivery from the company’s end will still be running smoothly during Ramadhan as they are relying on a lot of migrant workers, SSESSMENTS.COM was told.
Click below to view related stories and content on SEA PE:
NewsSSESSMENTS: Review Of Southeast Asia HDPE Film Market Week 17, April 20-24
NewsSSESSMENTS: Review Of Southeast Asia LLDPE Film C4 Market Week 17, April 20-24
