Southeast Asian PE Market Players On A Cautious Stance Amid Current Price Trend
- Local PE offers showed further adjustment over the week
- Limited improvement captured in demand for PE resins within the region
- Players stated a bearish outlook as current price trend lacking support from demand
As reported to SSESSMENTS.COM, Southeast Asian PE market players are in a cautious stance amid the current price trend. Within the week commencing June 1, PE prices in Southeast Asia reported stable to increase. In the Philippines and Malaysia, offers for local PE across all grades reported stable. In Thailand, a local PE producer adjusted up the offers for HDPE Film and LLDPE Film C4 by THB500/ton ($16/ton) as compared to last week’s level, citing the limited supply on the producer’s end stemming from maintenance shutdown and firmer feedstock prices. Although the producer made an upward price adjustment, Thai traders did not follow suit. Most of the traders in the country were maintaining the offers stable over the week to attract buyers.
In the import market, import US mLLDPE C6 to Malaysia captured up by $80/ton as compared to the offer received in early May. For LLDPE Film C4, imported US cargoes that are estimated to arrive in Malaysia ports within this month surfaced with an increment of $30/ton compared to fortnight ago. At the moment, SSESSMENTS.COM noted that import offers for US LLDPE Film C4 to Malaysia stand at $780/ton on LC at sight, CIF Malaysia main port basis.
The overall demand for all grades of PE in the Southeast Asia market reported subdued. Buyers showed stiff resistance towards the upward price adjustment amid the slow sales for the end-products. Besides, converters are still having sufficient inventory on hand, hence, not in a rush to do replenishment activities. In the Philippines, the average operating rate at factories is still around 30-35% from the normal capacity due to labor shortage, SSESSMENTS.COM was told. On the supply front, limited supply reported from Thai PTT Public Company Ltd stemming from maintenance shutdown. The producer brought its 300,000 tons/year HDPE plant off-stream on May 25 and will remain offline until June 9. Upon the completion, the producer will conduct maintenance shutdown at its 300,000 tons/year LDPE plant and 400,000 tons/year LLDPE plant for 20-30 days.
Looking ahead, most Southeast Asian PE market players stated a bearish outlook and prefer to adopt a cautious stance. The upward price adjustment is deemed lacking supporting factors since demand for the end-products have yet to show any improvements. As such, market players prefer to stay on the sidelines to avoid any losses, as stated to SSESSMENTS.COM.
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