Market sources contacted by SSESSMENTS.COM cited that a Middle Eastern producer successfully sold HDPE cargoes to the Australia market almost at four-digits prices and believe that other foreign suppliers will sell at even higher amid supply shortage. As reported by the sources, the Middle Eastern producer has sold some volume of HDPE Pipe Black (100) to Australia at $990/ton on LC at sight, CIF Australia Main Port basis. However, the sources believe that other foreign suppliers, especially for Southeast Asian suppliers, should be able to conclude deals at higher prices since the cargoes are not dutiable. Besides, supply for HDPE Pipe in Australia is tight at the moment, citing that the local producer is unable to produce those grades due to limited availability of ethylene.
On the other side, the sources also heard about the rumour circulating in the market that a Qatari producer has sold out July allocation to the Southeast Asia market as the allocation is limited. Currently, most Middle Eastern producers are indeed having low inventory due to manpower issues in the midst of the Coronavirus pandemic. Aside from manpower issues, a particular producer based in Qatar is also facing ethylene shortage coupled with backlog orders, SSESSMENTS.COM was told.
Speaking of the Southeast Asia market, sources told SSESSMENTS.COM that demand within the region is not strong. However, most buyers have no choice but to accept the high prices considering the firm feedstock prices. In the days to come, market sources believe that PE prices will remain firm.
