Limited Activities Observed In Australia PE Market, Pricing Outlook Expected To Follow Global Trend
- Rumour regarding pricing plan for Thailand origin PE cargoes responded negatively
- Negative sentiment in general business activities in Australia
- PE prices would down in the near future following international market sentiment
Market sources informed SSESSMENTS.COM that not many activities were observed in the Australia PE market during the week. According to the sources, US producer opted to roll over LLDPE Film C4 offers from a week ago although the distributor only disclosed the price to the parties who submitted inquiries. Market talks also have it that a Thai PE producer is expected to announce offers for HDPE Blow Moulding, HDPE Film and HDPE Pipe Black (100) to Australia at $990/ton-level for August shipment, which is believed would not receive a positive response from buyers.
Regarding the business situation in Australia, the overall condition isn't getting positive. Market sources opined that sales might down by 5-10% as compared to the previous month following the latest development on the restriction of movement in Victoria. In this condition, Australian market sources told that most of the PE producers in the US are keeping 60-70% production rate to maintain current high prices. SSESSMENTS.COM quoted a source saying this is a reason why Southeast Asia and Australia markets saw high prices from the US producers as of recent. According to the source, low-end prices for US cargoes available in the market should be old stocks and offered by traders, and not the fresh price quotation from the producers.
With the Australia market is not in good shape to support the high prices for import PE cargoes, the sustainability of the current trend remains questionable. Some sources told SSESSMENTS.COM that import PE offers to Australia would go down in the near term, learning from the decline in PE prices in China market this week.
