SEA players: Mid-Eastern PE sellers willing to give discounts for Jan

PE players in Southeast Asia reported that a few Middle Eastern sellers conceded to giving discounts on their January offers after they approached the market with increases from December.

A woven bag converter in the Philippines reported that a Saudi Arabian producer revised their January HDPE film offer downwards by $30/ton from their initial level to $1120/ton CIF, cash.

The buyer also stated that he purchased LLDPE film from a different Middle Eastern supplier at $1140/ton CIF, saying, “The producer was initially seeking $1180/ton while buyers are now placing bids at $1130/ton, even below our deal level. Trading activities slowed down notably as many players left their desks for holidays.”

A trader operating in Malaysia stated that he was offered Middle Eastern LLDPE film at $1190/ton CIF, cash. He noted, “We aren’t interested in this offer as we heard that $1160/ton is obtainable in the market now.”

Players attributed the emergence of lower PE levels from the Middle East to the fact that regional demand failed to meet expectations amid the holiday mood and buyers’ sufficient stocks.

The overall ranges for Middle Eastern PE prices are currently quoted at $1230-1270/ton for LDPE film, at $1140-1230/ton for LLDPE film and at $1100-1150/ton for HDPE film, all on a CIF SEA, cash equivalent basis.