A local trader in Thailand shared with SSESSMENTS.COM on the latest deals for import Middle Eastern PE, PP cargoes and outlook for local PE prices. As reported, the trader purchased HDPE Film cargoes directly from a Middle Eastern PE producer at $20/ton lower than the initial offer received last week. Likewise, deals for LLDPE Film C4 from the producer concluded at $10/ton lower than last week’s initial offer level. Additionally, the trader also received offers for Middle Eastern LLDPE Film C4 cargoes from a global trading house and a Chinese trader. Offers for LLDPE Film C4 via a global trading house are available at $820-830/ton on LC at sight, CIF Thailand Main Port basis, while LLDPE Film C4 cargoes via a Chinese trader are being offered at $40/ton lower than the producer’s official offers. Despite the lower prices, the trader is not interested in taking the cargoes due to the shipment concern.
As for PP, the trader managed to conclude deals for PP Random Copolymer Injection from the same producer at the same level to the initial offer at $900/ton on the same payment and delivery term. Demand-wise, overall PE demand in Thailand is slow due to the Coronavirus. However, the trader stated that currently, no demand issue at the company’s end as most of the customers are producing flexible packaging and demand for these products remains healthy. The trader opined to SSESSMENTS.COM that even if local HDPE Film and LLDPE Film C4 prices declined to THB29,000/ton ($888/ton)-level, the prices still higher compared to import offers. As such, local offers would remain high and unworkable.
