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The gap between LLDPE and HDPE prices in SEA hits 5-year high

by ChemOrbis Editorial Team - content@chemorbis.com
  • 12/08/2016 (15:32)
In Southeast Asia, the gap between LLDPE and HDPE prices has hit a 5-year high recently, according to ChemOrbis Price Wizard, where average import prices for both products are compared. The gap between import HDPE and LLDPE prices was at $76/ton as of the first week of August, indicating the widest gap since the first quarter of 2011.

LLDPE prices mostly traded below HDPE in Southeast Asia in the past five years, although this has not been the case since mid-June this year. The premium LLDPE prices carried above HDPE in the past two months grew to be the largest of the last five years.



Players attributed the widening gap to the weaker demand and higher inventories for HDPE while demand for LDPE and LLDPE is relatively better due to limited availability.

An Indonesian trader commented, “We feel sales pressure, particularly for HDPE film. We are trying to clear our stocks for now and think that the market will track a downward trend in the near term.”

A distributor in Vietnam opined, “LLDPE and LDPE supplies are limited and therefore demand is slightly better for these products. On the other hand, HDPE offers are still too high to be sellable for the time being. Buyers are waiting to replenish material again until the end of this month. Demand is weak as players have high inventory and current levels are not competitive."

A Malaysian trader noted, “Many customers limit their purchases to their needs in the expectation of further declines. We are not certain about the upcoming market trend for now. If there is no problem, Petronas will be having maintenance on its HDPE line from 21st to 26th of August.”

Import LDPE and LLDPE offers are reported respectively at $1190-1215/ton and $1210-1250/ton while HDPE film was mostly stable at $1100-1180/ton, all CIF SEA, cash as of this week, according to ChemOrbis Price Index.
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