US PE sellers continue to target SE Asia as trade war with China escalates
Attractive offers from the US first showed up widely in Southeast Asia by around early August. As trade tensions with China have heated up in line with the third round of bilateral tariffs, US PE sellers continue to target the Southeast Asian markets with their still-attractive offer levels.
Despite their squeezed margins amid high ethane prices in the US, PE suppliers have managed to maintain their competitive edge so far in Southeast Asia, which is mostly attributed to the major capacity expansions and new capacities in their country.
A PE converter in Malaysia commented, “We are only interested in US origins for our next HDPE purchase given their competitive offer levels. The HDPE film market is likely to remain under downward pressure from increasing supplies from the US in the near term. As for LDPE, our US supplier is open to negotiation over his price level.”
A global trader cut its LLDPE film offers for US origins further by $30/ton to Southeast Asia last week despite some players’ expectations to see a rebound in prices amidst tight regional supplies. A Malaysian buyer noted, “We believe that we can easily obtain an additional discount for US LLDPE film.”
A converter operating in Vietnam reported, “We have concluded an HDPE film deal for a US origin recently while we are planning to wait before we decide on our next purchase since the market is still sending bearish signals for the near term.”
Another Vietnamese buyer confirmed the attractive offer levels for US HDPE, saying, “We are not interested in Middle Eastern or Southeast Asian origins. Despite its long shipment duration, we prefer US cargoes thanks to their competitive prices.”
More free plastics newsPlastic resin (PP, LDPE, LLDPE ,HDPE, PVC, GPS; HIPS, PET, ABS) prices, polymer market trends, and more...
- Styrene prices sink to multi-month lows in Asia and Europe
- European PET posts double-digit decreases for October
- PVC downturn gains pace in Asia on Taiwanese major’s larger-than expected drop
- Asian spot propylene regains premium over ethylene for first time since 2013
- Import LDPE, LLDPE prices almost back at par with ethylene in China
- Turkish players voice early PP, PE expectations for November
- Thin buying cushions impact of PVC shutdowns across Europe
- China’s PP market makes a strong start to post-holiday period
- Asian ethylene-naphtha spread narrows to 3-year low
- Local PVC markets plunge in India, Southeast Asia