Australian PE Market Slowly Recovered From Coronavirus Pandemic Impact
- Foreign producers inclined to adjust offers
- Demand still reeling from economic downturn amid Coronavirus
- Outlook is not optimistic in the upcoming week
Australian PE market is slowly recovered from Coronavirus impact, sources told SSESSMENTS.COM. A trader informed that this week offers from Thai producers for both HDPE Film and HDPE Blow Moulding are available at $865/ton, up by $25/ton from last week. Traders then prefer to conclude deals for USA origin HDPE Film cargoes at $820/ton. The trader also reported that import HDPE Pipe (PE 100) from Thailand was stabilized as compared to two weeks ago, still at $815/ton with deals concluded at initial offer level. No fresh offers for mLLDPE C6 were reported this week, but a US producer has indicated upward price adjustments in a week earlier. All offers on LC at sight, CIF Australia Main Port basis.
Speaking of the demand, the Australian PE market is slowly recovering from the Coronavirus pandemic impact, SSESSMENTS.COM quoted from the trader. The overall demand is improving but not that strong yet. The trader also pointed out that the feedstock price rally will not last because there is no strong demand to support. No issue in supply was reported this week.
In terms of outlook, PE prices are expected to remain at the current level for a while. With import fall because businesses are less inclined to spend money as quoted from government recession report, SSESSMENTS.COM noted that the foreign producers will find difficulties in concluding deals.
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