Australia Market Received Competitive PE Prices, Being Dumping Market For Most Suppliers
- Competitive prices captured for HDPE Pipe Black (100) cargoes from Thailand
- Most foreign suppliers dumping prices to Australia
- Australian PE market movement will not affect the Southeast Asia market
Market sources in Australia revealed to SSESSMENTS.COM on receiving competitive PE prices from foreign suppliers, citing that most suppliers dumping their prices to the country. As reported by an Australian trader, the company purchased HDPE Pipe Black (100) from a Thai polyolefins producer at $800/ton, which is deemed as the lowest compared to offers from other suppliers for the same cargoes. As noted, deals for the cargoes are lower by $10/ton compared to HDPE Pipe Black (100) cargoes purchased from another Thai producer, and South Korea as well as the United Arab Emirates origin. For LDPE Film cargoes, deals for Singaporean cargoes concluded at $875/ton. All transactions were on LC at sight, CIF Australia Main Port Basis.
As for demand, the Coronavirus outbreak still affects the Australia PE demand. Market sources also informed SSESSMENTS.COM that the Australian market becomes a dumping ground for most suppliers. Most of foreign suppliers always offered PE cargoes at lower levels as compared to offers in the Southeast Asia market. A trader claimed that market movements in Australia also do not affect the Southeast Asia PE market at all. On the supply side, no issue reported by market players.
Looking ahead, sources contacted by SSESSMENTS.COM opined that PE prices in Australia and New Zealand markets will remain soft following the previous pattern. Additionally, with the lockdown in a big market, like India and several Southeast Asian countries, some opined that Middle Eastern PE producers will likely try to push more cargoes to the country.
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