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Buyers in Southeast Asia complain of tight LLDPE supplies

  • 14/03/2016 (10:14)
Buyers in Southeast Asia voiced complaints of struggling to secure sufficient volumes of LLDPE, with limited availability combining with higher upstream costs to push prices higher. There were rumors that a large LLDPE plant within the region had experienced a shutdown, although this could not be confirmed by the time of press. In addition, Thailand’s PTT Global was reported to be conducting a month-long shutdown at a 400,000 tons/year LLDPE plant.

A distributor based in Indonesia stated, “We have very limited stock levels for LLDPE while our HDPE supplies are sufficient. We are planning to raise our prices for LLDPE owing to tight supply for this product while we will most likely maintain our HDPE prices to ensure smooth sales.” A converter based in Indonesia stated, “We expect to receive higher prices for LLDPE as there are several plant shutdowns being conducted within the region.”

A Malaysian converter in the packaging sector reported, “We hear that domestic producers have sold out their LLDPE allocations and are currently unable to give cargoes even to their regular customers. Based on this, we expect to see higher LLDPE prices in the days ahead.” A plastic bag manufacturer added, “We are struggling to secure adequate supplies of LLDPE c4 film and have had to use metallocene grades for around 10% of our raw material needs to maintain smooth production. We are worried that we may lose some of our customers as our buyers are reluctant to pay the higher prices we need to cover the increase in our raw material costs.”

In Vietnam, a plastic film manufacturer commented, “Our normal Southeast Asian suppliers have informed us that they will not be able to supply LLDPE c4 this month and we have had to turn to the local market instead. We find the offers we received from the distribution market to be too high to accept and are planning to wait for now as we have enough stock to cover our needs for the next month.” A trader based in Vietnam stated, “We secured some HDPE film from a Saudi Arabian major recently, but were unable to acquire any LLDPE film as our supplier claimed to be sold out for this product.”
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