- Far East Asia origin $885/ton
- Middle East origin $740-820/ton
- Southeast Asia origin $820-900/ton
Comments by market players on HDPE Film market as follows:
An Indonesian converter informed SSESSMENTS.COM, “At the end of May, we purchased HDPE Film cargoes from the United Arab Emirates for June shipment. However, the shipment got delayed until mid-July. Despite the delay, this week, we still purchased a small quantity of HDPE Film from the same producer at the same level to the initial offers at $740/ton on LC at sight, CIF Indonesia Main Port basis as the current prices are special offers. While for other origins, we received offers for Kuwaiti and Philippines HDPE Film at $790/ton and $820/ton respectively on the same payment and delivery terms, however, the Philippines cargoes have been sold out. We think PE prices will start to drop coming to July or August as at that time, import cargoes will start to flood the market.”
“This week, our offers for HDPE Film cargoes to Indonesia market increased by $50/ton compared to last week on the back of limited allocation stemming from maintenance shutdown,” a Thai PE producer told SSESSMENTS.COM.
“Southeast Asian producers maintain firm offers for HDPE Film cargoes following the firmer ethylene prices. July shipment offers for HDPE Film from a Malaysian producer to the Philippines moved up by $70/ton from June shipment. While for Thai cargoes, we did not receive fresh offers as the producer did not have any HDPE Film allocation to offer.”
“Offers for HDPE Film of India and Saudi origin increased by $40/ton on a weekly comparison. The allocation for Saudi cargoes is limited. While for US origin, HDPE Film cargoes are available at $20-40/ton higher compared to the same period. PE demand in Vietnam is not strong yet as most buyers still cannot accept the current higher price. Moreover, they still have some inventory left,” a Vietnamese trader revealed to SSESSMENTS.COM.
A Philippines converter commented, “We received offers for import US HDPE Film cargoes between $130-150/ton higher on a monthly comparison, available between $790-800/ton on LC at sight, CIF Philippines Main Port basis. We still think that the current offers are competitive. However, the problem is the lead time, which takes around 3-4 months to arrive in the Philippines.”
“This week, we still managed to conclude deals for July shipment offers of Thai HDPE Film at $830/ton on LC at sight, CIF Manila Port. While for Malaysian cargoes, deals achieved at $20/ton lower than the initial level at $830/ton on the same payment and delivery term,” a Philippines trader informed.
“Most traders in Vietnam are trying to sell Southeast Asian HDPE Film cargoes at $900/ton on LC at sight, CIF Vietnam Main Port basis. However, as demand is not strong due to the pandemic, we do not think such a level is achievable. Our sell idea for HDPE Film is between $850-870/ton on the same payment and delivery term,” a Vietnamese trader told SSESSMENTS.COM.
A Malaysian-based converter informed SSESSMENTS.COM, “This month, we asked for 500 tons HDPE Film cargoes from a Middle Eastern producer, however, we only received less than a half of the quantity asked, around 200 tons. As such, we have to source from other suppliers. We purchased Middle Eastern HDPE Film at $790/ton on LC at sight, CIF Malaysia Main Port basis. While from another origin, deals for US HDPE Film cargoes concluded at $810/ton on EXW basis as the cargoes already in Port Klang, Malaysia. PE offers are firm and the allocation is limited as most foreign suppliers prefer to sell cargoes to China market due to the healthy demand and higher prices. Pertaining to demand, currently, our factories running at full capacity as finished product demand from our end is healthy. We believe that PE prices will start to drop in mid-July when import cargoes start to arrive in China market and put pressure on PE prices.”
“We purchased HDPE Film cargoes from the leading Saudi polyolefins producer at the same level to the initial offers at $830-870/ton on LC at sight, CIF Vietnam Main Port basis with the shipment from Singapore. The producer was unwilling to give room for negotiation citing that they do not have much quantity to offer. Moreover, the international market prices are firm as supported by the firm feedstock prices,” a Vietnamese converter commented.
