A local converter in Malaysia contacted by SSESSMENTS.COM’s team stated that the company received less PE allocation as most suppliers prefer to move cargoes to China market. According to the converter, this month, the company was asking for 500 tons HDPE Film cargoes from a Middle Eastern producer, however, the converter only received less than a half of the quantity asked, around 200 tons. As such, the converter has to source from other suppliers. The converter purchased Middle Eastern HDPE Film at $790/ton on LC at sight, CIF Malaysian 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.
Further explained, due to the healthy demand, most suppliers prefer to move PE cargoes to China market. Moreover, the suppliers could sell at a higher level to China compared to the Southeast Asia market. Demand-wise, currently, the converter is running at full capacity as the finished product demand from the converter’s end is healthy. The converter believes that when import cargoes entering the China market, which is expected to arrive around mid-July, import PE prices would start to decline, as stated to SSESSMENTS.COM.
