SEA producer issues Jan PE, PP prices to the region, sold out to China

A source from a Southeast Asian producer reported that they announced their January PE and PP prices to regional markets while they have almost sold out their January quota to China.

Their new offers stand at $1330/ton for LDPE film, at $1180/ton for HDPE film, at $1130/ton for homo-PP raffia and injection and at $1200/ton for PPBC injection, all on a CIF SEA, cash basis. According to the source, their new LDPE offers are up by $10/ton when compared to their initial December levels.

“We had concluded some HDPE film deals at $1140/ton CIF SEA for December, yet we are planning to stand firm on our offers now and we will divert our cargoes to China if regional buyers don’t accept them,” the source stated.

The producer concluded January deals in China at $1160-1170/ton for HDPE film, at $1360/ton for LDPE film, at $1130/ton for PP raffia and at $1200/ton for PPBC injection, all on a CIF China, cash basis. The source said, “We find LDPE film sell ideas above $1400/ton to be too ambitious since demand is slower than last month given buyers’ resistance to surging prices. However, China still offers better netbacks when compared to other export outlets such as Turkey and Southeast Asia as supplies remain limited in the country.”