Local PE Prices In Thailand Moved In The Opposite Of Price Trend In Some Other Southeast Asian Countries
- Demand for PE in the region remains sluggish
- Malaysian converters are still running between 60-70% of the normal production rate
- Malaysia’s Lotte Chemical Titan will conduct maintenance at HDPE plant
SSESSMENTS.COM noted that local PE prices in Thailand moved in the opposite of price trend in some other Southeast Asian countries. A Thai PE producer attempted to boost sales by giving promotional prices. Compared to last week, offers for PE across all grades from the producer were THB750/ton ($23/ton) lower for minimum purchases of 225 tons. A local trader claimed that offers received from the producer this week for HDPE Film decreased by THB1,000/ton ($31/ton) while offers for LDPE Film and LLDPE Film C4 dropped by THB2,000/ton ($62/ton) and THB750/ton ($23/ton), respectively. The changes were also compared to a week ago. To follow the producer’s move, a trader offers localized HDPE and LLDPE Film C4 from Malaysia at the same level as the producer’ offers, at THB26,500/ton ($825/ton) on cash, FD Thailand basis and excluding 7% VAT, without a minimum purchase requirement.
From the import market, LLDPE Film C4 offers from a Middle Eastern PE producer to Malaysia increased between $10-20/ton compared to a fortnight ago. Offers for HDPE Film and LDPE Film from the producer were stable on a weekly comparison. To Myanmar, offers for HDPE Film of US origin increased between $80-90/ton compared to levels at the end of April. On a monthly comparison, offers for HDPE Film and LDPE Film from a Malaysian polyolefins producer to the Philippines went up by $20/ton and $50/ton, respectively. For Detailed information for Indonesia and Vietnam market is available in WeeklySSESSMENTS of the respective countries.
Overall demand for PE in the region remains sluggish. Buyers are reluctant to purchase in big volume. Although the government has loosened lockdown rules in Malaysia, most converters are still running between 60-70% of the normal production rate as end product sales are unimproved. As for the Philippines, activities in the market have resumed as some areas in Luzon are already under General Community Quarantine (GCQ) status. However, demand has yet to improve as Metro Manila will remain under lockdown until May 31. On the supply side, SSESSMENTS.COM was told that LLDPE Film C4 allocation for June shipment from a Middle Eastern PE producer is limited and only for regular customers. In the production sector, Malaysia’s Lotte Chemical Titan will conduct maintenance at the company’s HDPE plant no. 1 with a production capacity of 220,000 tons/year in early June for around two weeks.
Market players opined to SSESSMENTS.COM that chances for further increases in PE prices are slim as demand is unable to support high prices. Significant increases will only be possible when demand remarkably improves on post COVID-19 outbreak, the players added.
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