Philippines converter shared with SSESSMENTS.COM regarding their latest procurement activities for import PE and PP cargoes. This week, the converter received offers for May shipment cargoes from several producers. A Singaporean producer offers PP Homo Film at $850/ton, or $80/ton lower from last month's offers. Also, the Saudi producer offers LLDPE Film C4 cargoes at $740/ton, or $60/ton lower than last month. The converter skipped procuring cargoes from both origins because their inventory is still sufficient.
The converter also told SSESSMENTS.COM that the initial offer from a Malaysian producer for HDPE Film and LDPE Film is $50/ton and $100/ton lower respectively from last month's offers. Both cargoes then purchased in small volumes with deals concluded at $20/ton lower, at $730/ton for HDPE Film and $830/ton for LDPE Film. All offers are on LC at sight, CIF Philippines Main Port basis. More added, onwards, the converter prefers to procure locally for LLDPE Film C4 and HDPE Film if there is an urgent need, even though offers for local PE cargoes from the leading polyolefins producer in the country is still considered high at PHP50,000/ton ($881/ton) on cash, FD Philippines basis and including 12% VAT.
The converter then reported that they are allowed to run the operation at a reduced rate despite the factory is located in Metro Manila, an area under Enhanced Community Quarantine (ECQ), as they provide supply for manufacturers who produce essential products. Meanwhile, demand for its products has begun to rise this week, with converter confide to SSESSMENTS.COM that trend will accelerate along with the local consumption rate recovery.
The converter then predicts lower PE and PP offers for the Philippines market in the near future. "Meanwhile, the government has increased the testing capacity for COVID-19 and the number has been going down lately, we hope that the situation will be better, and hopefully Metro Manila will also enter GCQ (General Community Quarantine) or less strict quarantine enactment soon," the converter shared with SSESSMENTS.COM.
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