A marketing arm of a Middle Eastern producer sold out May shipment allocation for LLDPE Film C4 and hinted offers for June shipment. This week, May shipment allocation for LLDPE Film C4 is already sold out. Although there are a lot of orders received in the previous week due to the competitive offers at $690/ton-level, the producer has to cancel some orders or reduce the quantity to make sure that every regular customer gets the volume. The marketing arm stated that some customers doubled the buying quantity for May shipment as the previous offers were competitive. Hence, the allocation is sold out. “There is also a rumor saying that the producer announces force majeure on LLDPE Film C4 supply. However, that is not the case as force majeure is when there is an issue with the plant which made the producer unable to provide supply for customers. While recently, they just sold out for May shipment, so the rumor is not true,” the marketing arm confirmed to SSESSMENTS.COM.
For June shipment offers, sell idea for LLDPE Film C4 is around $10-20/ton higher from last week’s level. As stated to SSESSMENTS.COM, there are still cargoes available for HDPE Film and LDPE Film with limited quantity. For HDPE Film, the offers are around $20-30/ton higher from last week owing to tight supply. However, customers are still asking for the offers at $720/ton on LC at sight, CIF basis claiming that Saudi cargoes are available at that level with shipment from Port Klang, Malaysia. While for LDPE Film, the offers increased between $10-30/ton from last week, also supported by the limited supply, and some deals were concluded at the initial offer level.
Pertaining to the demand, the marketing arm stated to SSESSMENTS.COM that sales for LLDPE Film C4 for this week are better compared to the other grades. From downstream factories, most customers are still running at 60% of normal capacity as demand for finished products remains slow. The outlook remains pessimistic.
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