Hike attempts from Mid-East meet resistance from PE buyers in SEA
A Southeast Asian trader reported that a Middle Eastern producer approached the market with $10-20/ton increases for October. According to him, the producer’s new prices stand at $1200/ton for LLDPE film and at $1120/ton for HDPE film on a CIF SEA, cash basis. He commented, “We believe that Middle Eastern suppliers’ hike requests would not find acceptance on the buyers’ side as demand is disappointing amidst sufficient supplies. The producer might concede to giving discounts after negotiations.”
A Vietnamese converter operating in the packaging sector confirmed receiving $20/ton higher October PE prices from a Middle Eastern supplier at $1200/ton for LLDPE film and at $1140/ton HDPE film CIF, cash. “We aren’t planning to make any fresh purchases as we have sufficient stocks for the moment. Plus, demand towards our end products is quite poor nowadays. We prefer to wait on the sidelines for now and monitor the market developments before deciding on our next step,” the buyer noted.
In Southeast Asia, the overall ranges for Middle Eastern PE prices are currently quoted at $1160-1220/ton for LLDPE film and at $1090-1140/ton for HDPE film, all on a CIF, cash equivalent basis.
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