Search posts by:

Search posts by:

Newsletter successfully sent
Failed to send newletter

WeeklySSESSMENTS: SEA PE Prices Week Starting July 20

Author: SSESSMENTS

Southeast Asian Market Players Doubted Sustainability Of Current PE Price Trend Considering Demand Conditions

  • Local and import PE offers within Southeast Asia market captured in a different trend
  • PE demand remains sluggish amid several influencing factors
  • State of demand expected to drag PE prices in the days to come

Southeast Asian market players contacted by SSESSMENTS.COM doubted the sustainability of the current PE price trend considering the demand conditions. In Thailand, a trader stated that the latest local offers from the country’s PE producer captured at THB1,000/ton ($31/ton) higher for HDPE Film and LLDPE Film C4 cargoes, and at THB500/ton ($16/ton) higher for LDPE Film. On the other side, another Thai trader decided to roll over prices for local LDPE Film but adjusted down local HDPE Film and LLDPE Film C4 offers by THB500/ton ($16/ton) on the low-end of the price range. In the Philippines, no fresh offers from the local producer yet. In Malaysia, local PE offers remain stable. All compared to last week’s levels. However, some Malaysian distributors said that they already sold out July delivery and are currently collecting customers’ inquiries for the upcoming delivery. Detailed information for Indonesia and Vietnam market is available in WeeklySSESSMENTS of the respective countries.

In the import market, a Malaysian converter reported on receiving offers for Qatari LLDPE Film C4 at $30/ton lower than last week’s level. Despite the decrease, the converter still attempted to bid at $830/ton-level, or $20/ton lower than the initial offer level. To date, no confirmation from the supplier regarding bids yet. Via a regional trader, import offers for Saudi LLDPE Film C4 to Cambodia and Malaysia surged by $50/ton on a monthly comparison, available at $920/ton. Some customers submitted bids at a below $900/ton-level but were rejected by the trader. Eventually, Saudi LLDPE Film C4 cargoes sold at $900/ton to Malaysia and at $910/ton to Cambodia. In Myanmar, offers for Thai HDPE Blow Moulding and HDPE Yarn, Middle Eastern HDPE Blow Moulding, as well as US LLDPE Film C4 were unchanged from last week’s levels. Moreover, a Thai trader commented that most import offers to the Southeast Asia market for both HDPE Film and LLDPE Film C4 at above $900/ton-level was deemed unworkable, while for LDPE Film, offers at $970-980/ton-level were acceptable considering the limited supply. All offers on LC at sight, CIF Main Port basis, SSESSMENTS.COM noted.

As reported to SSESSMENTS.COM, the overall demand for PE resins within the Southeast Asia market is considered as sluggish this week. In Thailand, the market remains quiet and shows no sign of improvement as buyers prefer to stay on the sidelines amid high prices and sufficient inventory. In the Philippines and Malaysia, buying sentiment for PE resins is in-line with the weak end-product demand. Some Philippines manufacturers are currently running at a reduced rate but plan to cut production rate further next week taking into account the weak demand. While in Myanmar, demand is slowing down due to the advent of the rainy season. Besides, high prices also discouraged buyers from making fresh procurements. On the supply side, supply shortage for HDPE Film was reported in Malaysia. Additionally, a trader reported that the overall supply for LDPE Film in the Southeast Asia market is relatively limited at the moment. 

For the outlook, the majority of Southeast Asian market players believe that PE price will be unable to maintain its current bullish trend, particularly for the local offers. Players cited to SSESSMENTS.COM that the current state of demand; which is predicted to be stagnant, will likely drag PE prices in the days to come.

Local PE offers on FD basis, excluding VAT in all terms (except in PHP term including 12% VAT)

OriginProductTransaction TypeCurrencyOffers/tonEquivalent in USD/tonPayment TermDelivery Location
MalaysiaHDPE Blow MouldingPrice ListMYR4,04094930 Days Credit TermMalaysia
MalaysiaHDPE FilmPrice ListMYR3,96093030 Days Credit TermMalaysia
PhilippinesHDPE FilmOffer ReceivedPHP57,0001,030Cash In AdvancePhilippines
ThailandHDPE FilmOffer GivenTHB29,500-30,000932-948Cash In AdvanceThailand
ThailandHDPE FilmOffer ReceivedTHB31,500995Cash In AdvanceThailand
ThailandHDPE FilmSoldTHB29,500-30,000932-948Cash In AdvanceThailand
MalaysiaLDPE FilmPrice ListMYR4,390-4,5301,029-1,06130 Days Credit TermMalaysia
ThailandLDPE FilmOffer GivenTHB32,5001,027Cash In AdvanceThailand
ThailandLDPE FilmOffer ReceivedTHB33,5001,058Cash In AdvanceThailand
MalaysiaLLDPE Film C4Price ListMYR4,2701,00030 Days Credit TermMalaysia
PhilippinesLLDPE Film C4Offer ReceivedPHP56,0001,012Cash In AdvancePhilippines
ThailandLLDPE Film C4Offer GivenTHB29,500932Cash In AdvanceThailand
ThailandLLDPE Film C4Offer ReceivedTHB31,500995Cash In AdvanceThailand
ThailandLLDPE Film C4SoldTHB29,500-30,000932-948Cash In AdvanceThailand

Import PE offers on LC at sight, CIF Main Port basis

OriginProductTransaction TypeOffers (USD/ton)Delivery Country
Middle EastHDPE Blow MouldingOffer Received910-920Myanmar
Southeast AsiaHDPE Blow MouldingOffer Received940-950Myanmar
Middle EastHDPE FilmOffer Received930Malaysia
Southeast AsiaHDPE FilmSell Idea870-900Southeast Asia
Southeast AsiaHDPE YarnOffer Received940-950Myanmar
Southeast AsiaLDPE FilmSell Idea970-980Southeast Asia
Middle EastLLDPE Film C4Offer Given920Cambodia
Middle EastLLDPE Film C4Bid Received890Cambodia
Middle EastLLDPE Film C4Sold910Cambodia
Middle EastLLDPE Film C4Bid Given830Malaysia
Middle EastLLDPE Film C4Bid Received890Malaysia
Middle EastLLDPE Film C4Offer Given920Malaysia
Middle EastLLDPE Film C4Offer Received850Malaysia
Middle EastLLDPE Film C4Sold900Malaysia
North AmericaLLDPE Film C4Offer Received840-860Myanmar
Southeast AsiaLLDPE Film C4Sell Idea870-900Southeast Asia

Tags: Asia Pacific,English,Freemium,PE,SEA,Weekly

Published on July 23, 2020 1:23 PM (GMT+8)
Last Updated on October 1, 2020 2:25 PM (GMT+8)