Sep PE offers to SE Asia indicate trend reversal amid Covid-hit demand
PE producers’ initial offers for September, on the other hand, have emerged with monthly decreases as demand was hit further by the third-wave of Covid, which pushed regional countries to take stricter measures.
During the week that ended on August 20, import prices for all origins were assessed stable from the previous week at $1340-1450/ton for LDPE film, $1120-1200/ton for HDPE film, and at $1150-1230/ton for LLDPE film, all on CIF SEA, cash basis.
Up to $50/ton decreases on initial Sep offers
Regional players have reported lower offers for September.
A regional producer announced its fresh offers to Indonesia with monthly decreases of $30/ton for LDPE grades and $20/ton for HDPE blow molding. Only HDPE film offers were flat on the month.
A Vietnamese trader, meanwhile, reported offering Saudi origin HDPE film for new shipments at $1150/ton and LLDPE film at $1230/ton CIF, cash basis.
“PE prices dropped by $50/ton compared to last month. Producers are reluctant to sell to Southeast Asia considering low price levels there. Moreover, there are high freight costs, and difficulty in booking vessels. On the demand front, there has been no improvement due to lockdowns. Buyers are not very interested in buying more material at this moment,” he commented.
A Vietnamese converter reported receiving offers for Saudi and Thai origin HDPE blow molding at $1140/ton and $1130/ton CIF, cash basis, respectively. “HDPE blow molding prices fell $30-40/ton from last month. Our operating rates are just at 25% now,” he said.
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