Market sources reported to SSESSMENTS.COM that a Middle Eastern PE producer adjusted August shipment offers in polar opposite with Southeast Asian buyers’ acceptance level. Compared to a week earlier, August shipment offers for import PE cargoes across all grades from a Middle Eastern producer surfaced wth an upward adjustment between $20-30/ton citing the limited allocation due to backlogs. Following the increases, the offers are way too high and it will be difficult to conclude deals at such a level. Corresponding to the previous statement, market sources revealed that customers’ buy idea for HDPE Film is only between $880-920/ton on LC at sight, CIF Main Port basis. For LDPE Film, the offers have gone up as much as $120/ton from last month and it will be difficult for customers to accept significant increases within a month except for customers who have specific requirements to only use cargoes from the producer. As for LLDPE Film C4, the acceptable level for buyers are only around $860/ton-level. Hence, the current offer level will most likely be deemed unworkable.
As explained to SSESSMENTS.COM, it will be much more difficult for the producer to sell in the Malaysia market as most procurements for import cargoes were done by big converters and the sales are also direct to the converters. Moreover, the demand for the finished product is still slow, hence, buyers are showing resistance towards the high prices. Unlike China and Vietnam, where small converters will have no choice than to accept the offer levels quoted by the suppliers as there are a lot of speculations going on and the market is dominated by traders. Although market talks have it that the LLDPE Film C4 market is rather quiet in Vietnam as most converters already have sufficient inventory on hand. Sources added that at the moment, the producer is not in a rush in moving cargoes while monitoring the August shipment offers from other suppliers as well as the buyers’ acceptance level.
