Import, local PE prices post steep declines in SEA

Spot PE prices have continued to move lower in Southeast Asia this week in line with the declining trend in the nearby Chinese market as well as lackluster demand within the region, as per ChemOrbis. Several Southeast Asian and Middle Eastern producers announced their June prices with discounts when compared with their most recent May prices this week while the availability of some competitive re-export offers from China also helped pull down import prices. A Thai producer announced June HDPE film prices this week with a US$100/ton decrease when compared with their most recent May price levels. Converters within the region reported receiving new June prices with US$70/ton decreases for Singaporean HDPE film and US$140/ton decreases for Singaporean LLDPE film from two global producers. Another buyer reported that they received new June prices from a Middle Eastern producer with price cuts of US$45/ton for HDPE film and US$80/ton for LLDPE film when compared with the producer’s most recent May price levels. Elsewhere, a trader has received new June offers for Middle Eastern LDPE film from a global producer with price reductions of US$115/ton from May. Players receiving these offers attributed producers’ price reductions to lackluster demand within the region. Week over week, import prices have lost US$70-140/ton for LLDPE film and US$100-140/ton for LDPE film while import HDPE film prices have declined by US$50/ton on the lower end of the range. Local PE prices also moved lower over the past week in the region, with players citing persistently weakening import prices as well as sluggish demand as the main reasons for the ongoing decline in prices. An Indonesian producer reduced prices to the local market by US$70/ton for LLDPE film and by US$80/ton for HDPE film this week, bringing down domestic prices in Indonesia for the third consecutive week. When compared with the start of May, domestic prices in Indonesia have posted significant declines of US$160-180/ton for HDPE film and US$190-216/ton for LLDPE film. In Malaysia, distributors reported that they managed to conclude some June deals this week at prices equal to their initial June price levels, which were announced last week with decreases of MYR430/ton (US$143/ton) for LLDPE film, MYR400/ton (US$133/ton) for LDPE film and MYR270-290/ton (US$89-96/ton) for HDPE film when compared with the late May offer levels. Distributors complained that they were only able to conclude sales for small amounts of material this week, adding that they still believe that domestic producers might agree to a second June decrease later in the month given the fact that most buyers claim that they find import prices to be more competitive than local prices these days. In Thailand, domestic PE prices lost THB1000-3000/ton (US$33-99/ton) for LDPE film, THB3000/ton (US$99/ton) for LLDPE film and THB3000-5500/ton (US$99-181/ton) for HDPE film this week as distributors agreed to significant reductions on their prices in hopes of speeding up their sales. Converters in Thailand have reportedly started making more price inquiries these days, although buyers added that they remain hesitant to purchase beyond their needs for now.