Initial June PE offers to SEA signal firming despite buyers’ resistance
Sellers’ firmer pricing was mainly attributed to soaring energy complex as well as the recent gains in Asia’s spot ethylene market. Buyers, on the other hand, continued to show resistance to higher offers by pointing to low prices for US origins, the recent softening in China’s local market as well as the start of the monsoon season and the month of Ramadan.
Traders reported that a Southeast Asian producer rolled over its June PE offers to Indonesia on a monthly basis while a Malaysian producer announced its June PE prices to regional markets with $20/ton increases when compared to its done deal levels for May.
A source from the Malaysian producer cited the bullish run of energy complex as the reason behind their hikes. “We haven’t received any response from the market following our announcement. We are aware that buying interest may be thin in the near term in Indonesia and Malaysia given the Ramadan month,” he noted.
Offers from the Middle East have also started to surface on a firming path, with a Middle Eastern producer increasing its June PE prices to the region by $10/ton for LDPE film, by $20/ton for LLDPE film, and by $30/ton for HDPE when compared to May.
A Thai trader commented, “Sellers remain firm on their offers with support from strong energy costs. However, buyers are showing resistance to further hikes. By the way, demand in China is also not doing well and if futures market withdraws its support, then regional sellers won’t be able to protect these high levels. We think that Middle Eastern sellers’ approach would also change as their offers are likely to see no interest.”
A Malaysian converter noted, “Offers we received for Middle East origin PE are higher. Yet, we are planning to place lower bids as the overall demand is weak in the country.”
A seller operating in the Philippines also opined, “We think that producers will preserve their firm stance on the back of higher crude oil futures while done deal levels will depend on the stance of demand.”
More free plastics newsPlastic resin (PP, LDPE, LLDPE ,HDPE, PVC, GPS; HIPS, PET, ABS) prices, polymer market trends, and more...
- Asian PS markets unfazed by losses in crude oil futures
- Local PP recovers from multi-year lows in Thailand, Vietnam and Indonesia
- Firming falters in China’s PET market on lower crude, pre-holiday lull
- Firming in HDPE lags behind LLDPE, LDPE on plastic bag ban in SE Asia
- PP markets witness hike attempts for Jan in Europe
- European PE opens post-holiday period on firm note, buyers stay cautious
- PP, PE sellers lift offers to Vietnam despite pre-holiday lull
- Asian PVC markets hit 3-month high, led by Taiwanese major’s Feb pricing
- Egypt’s PP, PE markets edge higher after a year of weakness
- Will Asian ABS resume firming amid higher crude, Chinese New Year?