Australian PE Market Slowly Coming Back Amid Easing Coronavirus Restrictions
- Deals captured for import HDPE Pipe Black (100) from South Korea
- Demand exists but not strong yet
- Prices expected to remain stable in the near term
Market sources shared with SSESSMENTS.COM that Australian PE market is gradually coming back to normal as people have started to do outdoor activities amid easing coronavirus restrictions. As the market did not get many offers this week, a local trader then concentrates on fulfilling requests from customers. From that situation, the trader reveals that a South Korean producer finally agreed to move out their HDPE Pipe Black (100) cargoes at $1,010/ton on LC at sight, CIF Australia Main Port basis this week after previously was only planning to sell ethylene to the market.
At the moment, the trader informed the overall demand for HDPE Pipe Black (100) is not strong yet. The government is trying to give some stimuli to people so that they would go for home renovation or buy new properties which certainly will help the absorption of PE cargoes. However, the property sector in Australia is relying heavily on the tourism sector which mainly comes from China. As such, SSESSMENTS.COM noted that speedy recovery could not be expected while the government has only just begun to implement a three-step plan to remove the most lockdown measures by July. Market players agree that aftermath development could be seen by October onward after the overall impact from coronavirus pandemic assessed and being treated.
For pricing outlook, traders shared their calculation to SSESSMENTS.COM that import PE prices would not have chances to go up further, especially with monomer prices already hitting its peak now. If the price keeps going up further in the future; customers will eventually show strong resistance.
