Initial Nov PE prices surface softer in SE Asia, defying China
Traders reported that a Southeast Asian producer lowered its November LDPE offers by $20/ton to the region while a Malaysian producer implemented decreases of $40/ton for HDPE film and $30/ton for LDPE film and HDPE blow moulding when compared to its latest October levels.
A trader in Indonesia commented, “The Malaysian producer’s lower offers for November are a reflection of the weak status of demand in Indonesia. Local prices might track a mostly stable to soft path during next month, yet HDPE is likely to be an exception with its ongoing tightness.”
A Malaysian converter also said, “Demand remains limited to buyers’ urgent needs even after the initial PE prices for November surfaced softer. We think that PE prices might maintain a softening trend in the near term. However, the HDPE market may witness some increases due to limited supplies.”
In Vietnam, a few traders opined, “Demand is still weak despite the preparation season for Christmas and the new year celebrations. Most manufacturers in the country are having comfortable PE suppliers as they have reduced operating rates at their factories due to the lack of activity in the end-product markets. We are not planning to secure import cargoes at the current levels which still stand above the $1200/ton CIF threshold.”
Meanwhile, some traders in Vietnam reported that they prefer to source deep sea cargoes which are mostly offered at lower levels when compared to the mainstream origins. “We are more interested in US, Indian and Uzbek cargoes nowadays as they offer a competitive edge when compared to Middle Eastern and Southeast Asian origins.”
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