As stated to SSESSMENTS.COM, a Middle Eastern PE producer has announced June shipment offers to Indonesia and Malaysia market this week, while highlighting factors behind price adjustments. For LLDPE Film C4, the producer is currently focusing to meet their regular customers' immediate needs as the company is running low on allocations. As compared to fortnight ago, the producer initiated an increase of between $10-20/ton on LLDPE Film C4 offers to both Malaysia and Indonesia markets, available at $750/ton on LC at sight, CIF Main Port basis. Some customers are still reluctant to accept higher prices as the market remained concerned for demand slowdown amid pandemic crisis. The producer pointed out that the current higher prices are supported by rising ethylene and crude oil prices, yet no strong demand to support. However, the producer is still willing to entertain requests for discounts and managed to sell some volume at $5/ton lower than the initial offers.
In contrast, the producer maintained a stable offer level for HDPE Film and LDPE Film from a week earlier. For HDPE Film, the producer has finalized the deal between $745-755/ton on LC at sight, CIF Malaysia Main Port basis, or at $5/ton lower than the initial offer level as overall demand is in a downbeat period. “Most converters in Malaysia have yet to resume production even after relaxation of the lockdown orders, while some are running at a reduced capacity of 70% from the normal output due to slow sales for end-products. So far, most retail companies and department stores in Malaysia are temporarily closing stores in an unprecedented move to curb the spread of the coronavirus. As such, demand for grocery bags and single-use plastic retail bags continues to move lower and projected to decline further in the days to come,” the producer explained.
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