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WeeklySSESSMENTS: SEA PE Prices Week Starting June 29


Southeast Asian Market Players Questioned Sustainability Of Current PE Prices

  • More than $100/ton adjustments were applied on local LLDPE Film C4 offers in Malaysia
  • Most buyers prefer to hold procurement activities
  • Demand is predicted to remain weak as Q3 is traditionally the low season for PE in Southeast Asia

Southeast Asian market players contacted by SSESSMENTS.COM questioned the sustainability of the current high PE prices. This week, local HDPE Film and LLDPE Film C4 offers in Thailand increased further by THB500/ton ($16/ton) compared to last week while offers for LDPE Film were maintained stable compared to the same period. In the Philippines, the high-end of offers for both grades were already at PHP57,000/ton ($1,143/ton) on cash, FD Philippines basis and including 12% VAT as the leading polyolefins producer in the country applied an upward adjustment of PHP3,000/ton ($60/ton) on HDPE Film offers and PHP2,000/ton ($40/ton) on LLDPE Film C4 offers last Thursday compared to offers on June 23. No further adjustments were made since then. In Malaysia, July delivery offers from a local producer surfaced with significant adjustments of MYR380/ton ($89/ton) for HDPE grades and MYR280/ton ($65/ton) for LDPE grades. As for LLDPE Film C4, offers via traders soared by MYR770/ton ($180/ton). The changes were compared to June delivery offers. 

For imports, a Singapore-based trader offered LLDPE Film C4 of Saudi origin to Malaysia and Cambodia at $10/ton higher than sell ideas expressed last week. Deals for the same product of the United Arab Emirates origin via a global trading house concluded at $920/ton on LC at sight, CIF Thailand main port basis. The deals were $30/ton lower than the initial offer level. There were also deals concluded directly with the Emirati producer at $20/ton lower than the initial offers, at $900/ton with the same payment and delivery terms. For regional cargoes, offers for HDPE Film and LLDPE Film C4 of Thailand origin went up between $30-50/ton from last week’s levels. Detailed information for Indonesia and Vietnam market available in the WeeklySSESSMENTS of respective countries.

Overall, demand for PE in the region is soft, SSESSMENTS.COM was told. Buyers perceive the current PE offers as too high. Most prefer to hold procurement activities, anticipating lower prices later on. Moreover, converters across the region are facing slow end-products sales and some are still running at lower production rates. On the supply side, a Malaysian producer is having tight supply for almost all PE grades, except LDPE Film. Hence, the delivery is expected to be longer than usual. Similarly, Thai PE producers are also having limited allocation.

The majority of market players believe that there will be some downward adjustments on PE offers in the near future since demand is predicted to remain weak and unable to support high offers. Q3 is traditionally the low season for PE in Southeast Asia due to the rainy season, the players explained to SSESSMENTS.COM. However, there are also some players, especially in Malaysia, that expect PE prices to remain firm onwards owing to tight supply.

Local/localized 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 ListMYR4,04094230 Days Credit TermMalaysia
MalaysiaHDPE Blow MouldingOffer ReceivedMYR4,04094230 Days Credit TermMalaysia
PhilippinesHDPE Blow MouldingOffer ReceivedPHP56,0001,003Cash In AdvancePhilippines
MalaysiaHDPE FilmPrice ListMYR3,96092430 Days Credit TermMalaysia
MalaysiaHDPE FilmOffer GivenMYR3,96092430 Days Credit TermMalaysia
PhilippinesHDPE FilmOffer ReceivedPHP56,000-57,0001,003-1,021Cash In AdvancePhilippines
ThailandHDPE FilmOffer GivenTHB30,000-31,000967-999Cash In AdvanceThailand
ThailandHDPE FilmOffer ReceivedTHB31,000999Cash In AdvanceThailand
ThailandHDPE FilmPurchasedTHB30,000-30,250967-975Cash In AdvanceThailand
MalaysiaLDPE FilmOffer GivenMYR4,3901,02430 Days Credit TermMalaysia
MalaysiaLDPE FilmPrice ListMYR4,390-4,5301,024-1,05730 Days Credit TermMalaysia
MalaysiaLDPE FilmOffer GivenTHB32,5001,047Cash In AdvanceThailand
ThailandLDPE FilmOffer GivenTHB34,5001,112Cash In AdvanceThailand
ThailandLDPE FilmOffer ReceivedTHB34,0001,096Cash In AdvanceThailand
ThailandLDPE FilmPurchasedTHB33,000-33,5001,063-1,080Cash In AdvanceThailand
MalaysiaLLDPE Film C4Price ListMYR4,27099630 Days Credit TermMalaysia
MalaysiaLLDPE Film C4Offer ReceivedMYR4,16097030 Days Credit TermMalaysia
PhilippinesLLDPE Film C4Offer ReceivedPHP55,000-57,000985-1,021Cash In AdvancePhilippines
ThailandLLDPE Film C4Offer GivenTHB30,000-31,000967-999Cash In AdvanceThailand
ThailandLLDPE Film C4Offer ReceivedTHB31,000999Cash In AdvanceThailand
ThailandLLDPE Film C4PurchasedTHB30,000-30,250967-975Cash In AdvanceThailand

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

OriginProductTransaction TypeOffers (USD/ton)Delivery Country
ThailandHDPE FilmOffer Given940-950Southeast Asia
SaudiLLDPE Film C4Offer Given870Cambodia
SaudiLLDPE Film C4Bid Received840Cambodia
SaudiLLDPE Film C4Sold870Cambodia
SaudiLLDPE Film C4Offer Given870Malaysia
SaudiLLDPE Film C4Bid Received840Malaysia
SaudiLLDPE Film C4Sold870Malaysia
ThailandLLDPE Film C4Offer Given930Southeast Asia
United Arab EmiratesLLDPE Film C4Offer Received920Southeast Asia
United Arab EmiratesLLDPE Film C4Purchased900-920Thailand
USALLDPE Film C4Sold850Cambodia
USALLDPE Film C4Sold850Malaysia

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

Published on July 2, 2020 2:14 PM (GMT+8)
Last Updated on July 2, 2020 8:46 PM (GMT+8)