A regional trader discloses to SSESSMENTS.COM on the reason behind the current situation in the Philippines PE and PP market. The trader stated that the company received quite a lot of inquiries from buyers, especially for import PP Homo Film, yet buyers in the Philippines are unwilling to accept the current price level as the offers for PP grades are above $900/ton-level on CIF basis. Moreover, the offers are for July/August shipment which makes the offers more unattractive. Although the local currency is getting stronger against the US Dollar, which should be the best time to buy import cargoes, buyers are still reluctant to make purchases as the offers are deemed too high.
For PE, the trader is also considering buying more HDPE Film and LLDPE Film C4 cargoes from the leading Philippines polyolefins producer and offer it to the export market. However, the trader remains unsure whether it will receive a good response from the export market since the current level at $900/ton on LC at sight, FOB Philippines basis is considered too high.
Pertaining to the market situation, most companies in the Philippines are still in the process of internal recoveries, such as checking on their plants. “As such, there is not much improvement recorded from last week and at the moment, we prefer to focus on arranging the document and shipment to China market for June shipment that has been closed since last month,” the trader added to SSESSMENTS.COM.
