Market sources informed SSESSMENTS.COM that a Middle Eastern PE producer has announced new offers for this week. As reported, import offers for HDPE Film and LDPE Film moved up by $40/ton compared to a fortnight ago. While import offers for LLDPE Film C4 remain stable compared to the same period, available at $870/ton on LC at sight, CIF Main Port basis. However, the sources stated that such a level for LLDPE Film C4 is too high. Some buyers in Malaysia and Indonesia voiced out buy ideas at $30-40/ton lower than the initial offer levels.
According to the sources, due to the delay of Iranian cargoes, the Middle Eastern producer diverted more quantity to China market; as such, the allocation for the Southeast Asia market is limited or no materials at all for a certain grade. For LLDPE Film C4, the available materials are only around 100-200 tons, while LDPE Film allocation is also very limited. For HDPE Film, no materials available at the moment. Demand-wise, current finished product demand in Malaysia is still not strong yet and most converters are still running production at a reduced rate. The sources opined that even though on July 8 ethylene prices dropped between $79-81/ton on CFR North East Asia basis compared to level captured on July 1, PE prices in China will remain firm owing to Iranian cargoes issue, as stated to SSESSMENTS.COM.
