Australia PE Market Promised Bright Outlook, Foreign Producer Hinted Price Adjustment
- LDPE Film offers came from a Southeast Asian producer
- A Singaporean producer announced the discontinuation of LLDPE Film C4 production
- Players foresee positive outlook in the near term
As Australia PE market is promising a bright outlook, a foreign producer is hinting price adjustment in the near future. For prices, a trader shared information with SSESSMENTS.COM regarding the latest PE offers from foreign producers to the Australian market for the week starting May 25. For LDPE Film, a Singaporean producer released offers at $925/ton, $50/ton higher than last month. The trader commented that their offers were too high, hence, decided to skip procurements. For mLLDPE C6, a US producer is offering materials at $1,030-1,040/ton, up by $50-60/ton compared to a fortnight ago. All offers are on LC at sight, CIF Australia Main Port basis.
Demand-wise, market sources reported that PE resins demand in Australia continues to show an increase week by week. On the production sector, market sources informed SSESSMENTS.COM that a Singaporean producer announced the discontinuation of LLDPE Film C4 production. As such, all LLDPE Film C4 orders received by the Singaporean producer will be directly shipped by its sister company in the US.
Considering the improvement in demand, the Australian market players contacted by SSESSMENTS.COM shared a positive outlook for the upcoming week. One of the traders revealed that a US producer is planning to adjust up its mLLDPE C6 offers to Australia by $60/ton in the near future citing good demand and firm feedstock prices.
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