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LLDPE supply tight in Southeast Asia

by ChemOrbis Editorial Team -
  • 24/06/2016 (16:33)
Players in Southeast Asia reported limited supply for LLDPE due to plant shutdowns in the region, and as a result, demand for the product has reportedly picked up in Indonesia, Vietnam and the Philippines.

Supply for LLDPE has been reduced in the Philippines for some time. A converter producing plastic bags reported, “The supply side is becoming more comfortable for HDPE; however, LLDPE supply is still tight.”

An unplanned shutdown at a Thai producer’s cracker and downstream PE units affected its main export markets, Indonesia and Vietnam. A distributor in Indonesia reported that the Thai producer’s shipments to its customers were delayed and LLDPE faced a more considerable impact of this due to a two-week shutdown. “We feel that prices have reached the bottom already, however some customers still prefer to wait and see,” said the distributor.

A trader in Indonesia also confirmed that LLDPE supply for Middle Eastern origins is a bit tight while another trader in Vietnam said, “LLDPE demand is better than HDPE and therefore, we consider engaging in purchases only for LLDPE.”
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