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Deep-sea cargoes put pressure on SE Asia’s PE market

by ChemOrbis Editorial Team - content@chemorbis.com
  • 22/05/2017 (12:23)
In Southeast Asia, the decreasing trend in the PE market continued for another week over the past week despite the recovery seen in China’s local PE market mainly due to higher futures. Apart from persistently weak demand and lower ethylene costs, the emergence of deep-sea cargoes below the $1100/ton threshold pulled HDPE and LLDPE film prices further down in the region.

An international trader offered LLDPE and HDPE film for US and Northwest European origins at quite competitive levels of $1080/ton and $1030/ton, respectively, CIF Vietnam, cash. “Despite lower levels for deep-sea cargoes, buyers sourced in small quantities as the shipment from US or Europe takes about 45 days. Among PE grades, demand for HDPE is the weakest as there is no shortage for this grade while LDPE is better due to lesser supply,” the trader said.

Demand across Southeast Asia is expected to slow further down in the near term in line with the approaching monsoon season and the month of Ramadan. Plus, spot ethylene prices in Asia decreased by more than $110/ton by the end of the last week when compared to early May levels.
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