SE Asian players start to receive Sept PE prices from Mid-East
“In Southeast Asia, Middle Eastern cargoes may face competition from regional producers as more competitive offers for Southeast Asian origins start to emerge owing to lower naphtha costs while Middle Eastern suppliers are reluctant to give additional decreases,” the source commented.
The producer’s September offers stand at $1200/ton for HDPE film and blow moulding and at $1180/ton for LLDPE film, all on a CIF SEA, cash basis. Their offers indicate sizeable drops of $120/ton for HDPE and $140/ton for LLDPE when compared to August.
Meanwhile, some traders reported that they received September PE offers from a Saudi Arabian producer. However, the producer reportedly withdrew their offers shortly after their initial announcement. A trader reported that the producer revealed their September LLDPE offers at $1180-1190/ton CIF SEA, cash before they withdrew them. He stated, “We think that the producer withdrew their offers due to the presence of more competitive levels in the market. Crude oil prices are now below $40/barrel on the NYMEX while China’s economy is weakening. Hence, we believe that September announcements may face a delay.”
Another trader also reported receiving September PE prices from the same Saudi producer at $1180/ton for HDPE film and at $1160/ton for LLDPE film, both on a CIF, cash basis. According to him, the producer’s LLDPE film offer indicates a decrease of $120/ton when compared to their most recently reported August level. “Despite their reduction, we still found these levels to be too high when considering lower naphtha and ethylene costs. Based on the current costs, we believe that producers can even offer below the $1000/ton threshold,” he commented.
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