Resistance building in Southeast Asia’s PE market
Some hike attempts are voiced within the region although these levels are not likely to find acceptance in the market. A Singaporean producer reported raising its LDPE prices by $20/ton due to tight supply. A trader in Malaysia who received offers from the Singaporean producer commented, “Demand is the main determinant of the market trend. If they don’t see good demand, they may have to revise their prices down next week.”
Limited supply from Qatar still remains in place and this makes prices for this origin stand close to the high end of the ranges. A buyer in Malaysia who received Qatar LLDPE at $1190/ton and Saudi LLDPE at $1210/ton said, “We have not accepted these offers as we expect to see a correction by mid-August.”
Meanwhile, a trader said that a Middle Eastern producer offered $10-20/ton higher to Thailand when compared to other Southeast Asian suppliers due to ongoing tightness in the country. “However, these higher prices did not see acceptance on the buyers’ side and pushed them back to the sidelines,” the trader argued.
In Indonesia and Malaysia, local producers are also pushing for further increases due to limited supplies. Nevertheless, market activities remained sluggish in Malaysia as buyers are holding their purchases with the expectations of seeing some relief in prices in the near term. In Indonesia, some expressed disappointment with the fact that the post holiday demand has not been up to their expectations.
In Vietnam, a Thai producer confirmed their slower sales to the country, where the market followed a stable to softer trend due to comfortable local supplies and poor demand.
The overall import market was reported at $1180-1290/ton for LDPE, $1200-1250/ton for LLDPE, $1130-1190/ton for HDPE film and $1170-1200/ton for bm, all CIF SEA, cash.
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