Initial import PE prices for Oct announced higher to SEA

28-Sep-15
Players in Southeast Asia report that initial October PE prices from regional and Middle Eastern producers have begun to be announced with increases this week, as per ChemOrbis. Sellers pointed to firmer spot ethylene costs and some supply limitations as the main reasons for their price increases while buyers are showing some resistance to the new offer levels, arguing that the current state of demand is not healthy enough to support higher prices. An agent of a Southeast Asian producer said that their supplier raised their LDPE prices for October by US$30/ton, commenting, “Prices are on a firming trend for now, although we are not yet sure whether or not this upward movement will prove to be sustainable over the medium term.” A trader offering on behalf of a Thai producer said that their supplier lifted their prices by US$10/ton for HDPE film while maintaining their offers for LDPE film this week. “We are struggling to sell after lifting our prices and we are willing to consider concluding some deals at last week’s levels for our regular customers,” the trader commented. A trader based in Indonesia reported receiving new October prices for LLDPE film from a Saudi Arabian major with a US$30/ton increase from September. “Our supplier informed us that they are considering implementing some additional increases next week. Trading activity should pick up soon as availability is a bit tight in Indonesia and converters will need to return to the market to replenish their cargoes. We were able to sell a large quantity of LLDPE last week and we expect sales for LLDPE and HDPE to remain brisk over the short term,” the trader stated. Another trader reported receiving an offer for Saudi Arabian LLDPE film at the upper end of the current import range. “LLDPE supply is tight as an Indonesian producer will conduct a shutdown soon while our Saudi supplier is also planning to shut their plant over the near term,” the trader reported. According to ChemOrbis, a converter based in Malaysia said that they received initial October prices from two different Middle Eastern suppliers with $30-50/ton increases for both LLDPE and HDPE film. “We were surprised to see higher prices for this month as we do not feel that demand is strong enough to support a rising trend. We plan to wait to receive additional offers from other suppliers before making any purchases,” the converter commented.
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