A local trader in the Philippines shared with SSESSMENTS.COM on the latest done deal level for August shipment offers from a Malaysian polyolefins producer to the country. As reported, the Malaysian polyolefins producer has previously announced August shipment offers to the Philippines market, with a range of increase between $100-120/ton for across PE and PP grades on a monthly comparison.
SSESSMENTS.COM was informed that the trader managed to clinch deals for HDPE Film at the initial offer level as the producer is unwilling to entertain requests for discounts. Despite a sudden drop in ethylene prices, the producer remains firm on their offers since the company is still entangled with previous backlogs. Meanwhile, transactions for LDPE Film, PP Homo Film, and PP Homo Raffia cargoes were concluded at $20/ton lower than the initial offer level.
Commenting on the done deal level, the trader said, “Although previously ethylene prices have fallen, the producer is still sticking to their price as the company received overwhelming orders for HDPE grades from May to June. Therefore, the producer maintained firm offers as they have yet to fully clear its backlog orders. Besides, as the greenback fell broadly over the week, the producer tends to give priority to customers who are willing to choose Letter of Credit (LC) as a payment option, not with those Telegraphic Transfer (TT). Due to the rapid execution of payment, the producer can benefit from this payment option.”
