Will PE, PP suppliers be able to achieve hike targets for Oct in SE Asia?
Buyers’ initial response to higher announcement levels showed that suppliers might struggle to achieve their hike targets in October unless the bearish local sentiment reverses.
A Southeast Asian producer announced its October offers to Vietnam, Thailand and the Philippines with visible increases of $110/ton for HDPE, $80/ton for LDPE and $100/ton for PP. According to traders, the producer approached the Indonesian market with smaller increases of $50-70/ton for PP, $60/ton for LDPE and $100/ton for HDPE.
Meanwhile, a distributor reported that a producer from the United Arab Emirates (UAE) revealed its October PP and PE prices to Southeast Asia with fresh hikes from September. The producer’s new offers indicate increases of $50/ton for HDPE and PPBC, $60/ton for LDPE and $70/ton for LLDPE when compared to its September levels.
A trader operating in Singapore opined, “We expect to receive more October offers from the Middle East with increases in the days ahead. However, we are feeling uncertain as to whether suppliers can achieve the full extent of their hike targets as buyers are showing resistance, arguing the current firm trend may prove unsustainable over the near term.” Another seller added, “If China returns from the holiday on a firm note, the firming in Southeast Asia can be retained next month.”
Regional buyers mostly opined, “We are not planning to accept the recent hikes for October as China’s post-holiday outlook is mixed amidst increasing local supplies and limited availability for imported products. We will wait for China to be back from the holiday before deciding on our next purchase.”
A Malaysian converter placed a counter bid $20/ton below his supplier’s initial offer for Qatari LLDPE film. “We don’t want to purchase large amounts of PE when China is softening,” he said.
Within the region’s local PP and PE markets, suppliers failed to adopt a firm stance during the past week due to slow demand.
A Malaysian producer announced its October prices to the domestic market with slight decreases of around $12/ton from its recent September levels while a producer in Indonesia held its PP and PE offers stable last week for the first time since late July after applying consecutive weekly increases on its prices for almost two months.
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