Thailand domestic PE prices have gained some strength this week, buoyed by firmer energy market and relatively tight supply in the market. According to a local trader, local PE prices in Thailand have been rallying for four consecutive weeks since the middle of May. On the week commencing May 18, SSESSMENTS.COM noted that the sudden increase in crude oil and ethylene prices has triggered a local producer to increase their offers from a week earlier, reversing the downtrend since early of May.
This week, a Thai PE producer has initiated a price increase of THB500/ton ($15/ton) for local HDPE Film, LDPE Film, and LLDPE Film C4 cargoes as compared to last week. Firmer monomer costs and tightness in supply were cited as main factors triggered the producer to raise their offers for this week. The latest offers for HDPE Film and LLDPE Film are available in the market at THB29,500/ton ($937/ton), respectively, while offers for LDPE Film captured at THB33,500/ton ($1,064/ton). All offers are on cash, FD Thailand basis and excluding 7% VAT. “Speaking of the delivery arrangements, the producer can deliver some materials in June and July,” the trader added to SSESSMENTS.COM
From the company’s end, the trader is offering the same cargoes at THB500/ton ($15/ton) lower than the producer’s offers as the company still has some old stocks bought at lower costs, but the allocation is limited. In the market, the trader pointed out that other traders and agents are maintaining their low price quotes, offering the materials at lower prices compared to the producer’s price list as most are saddled with high inventory level. Even at these lower prices, the majority of buyers are reluctant to take the cargoes. At the moment, customers refrain from purchasing materials as most are still holding onto sufficient stocks; thus not in a hurry to make replenishment yet. As such, domestic demand remains sluggish over the week, SSESSMENTS.COM was informed.
