Australian PE Market Seeks Certain Grade Of Import Cargoes
- Import offers for HDPE Pipe Black (100) have not yet appeared this week
- No improvement in demand as coronavirus making a comeback
- Import PE offers expected to remain firm in the near term
Market sources shared with SSESSMENTS.COM that the Australian PE market is seeking HDPE Pipe Black (100) from the import market as local supply is tight. In term of pricing, overall import PE offers were going up further this week as Asia-Pacific producers are trying to utilize the current momentum of firm energy and feedstock prices to maximize profit. A trader then revealed that the company received offers from a Singaporean PE producer for LDPE Film at $995/ton, which is $70/ton higher as compared to last month. For LLDPE Film C4, a US producer quoted prices at $870/ton this week; no comparison because this is the latest offers after a period of absence. All import offers on LC at sight, CIF Australia Main Port basis.
Sources told SSESSMENTS.COM that Australia market is still waiting for the new import offers for HDPE Pipe Black (100) from Thailand. The market needs for HDPE Pipe Black (100) have not been met by a local producer who chooses to focus on HDPE Blow Moulding needed by dairy products packaging; at the same time, the local producer is also in short of ethylene supply. Market condition itself is still influenced by sentiment regarding the increase in coronavirus cases after Australia began easing social distancing restrictions over the past weeks. A report from Reuters on Thursday, June 25, stated that Victoria state already had 33 people tested positive for coronavirus in the past 24 hours, marking nine days of double-digit new cases in the state. The trader mentioned that the government of Melbourne, the largest city in Victoria, cancelled the plan to relax the social distancing rules. The national government has committed to removing the bulk of social distancing restrictions by the end of July, but each state will determine when and how easing takes place.
For the pricing outlook, traders shared their calculations to SSESSMENTS.COM that import PE prices will not decrease in the near term as feedstock prices remain high. As such, suppliers will most likely keep prices firm because of the higher production costs.
