Initial September PE prices in Asia have been announced with decreases from August, although the market remains under downward pressure as most buyers expect further decreases in the coming weeks and remain unwilling to purchase for now, as per ChemOrbis. Trading activity remained extremely limited this week in both China and Southeast Asia as buyers are hesitant to replenish stocks given widespread concerns about the health of the global economy. Converters in China complained that the start of the traditional high season for agricultural film has not led to any real improvement in demand over the past few weeks.
Import LLDPE film prices for September have been announced with decreases of US$30-100/ton in China. Few September prices for HDPE film were reported with rollovers this week. Producers complained that their new offers are meeting with little interest from buyers even after their price reductions, with only a few deals reported towards the lower end of the overall offer range. Inside China, domestic producers conceded to decreases of CNY100-600/ton ($16-94/ton) towards the end of this week in the face of persistently poor buying interest.
In Southeast Asia, import PE prices dropped at the lower end of the range this week as Middle Eastern producers returned to the market with decreases on September prices. A Saudi Arabian producer reduced their September prices by US$20/ton for HDPE film and US$30/ton for LLDPE film while complaining that their new offers are not being met with much interest from buyers despite prices being competitive when compared with other import origins. In the region's local markets, players in Indonesia experienced sales slowdown this week despite a cut by domestic producers by US$20/ton for HDPE and by US$40/ton for LLDPE. Distributors in Malaysia reported that producers announced initial September prices with rollovers this week as they have been unable to make sales at the new producer price levels amid buyers believe that prices will drop after the holidays, Buyers have not been tempted back to the market by rumors that local supplies for September will be limited. Buyers in both China and Southeast Asia are electing to remain on the sidelines for now in anticipation of seeing further price decreases in September. Players are generally pessimistic about the demand outlook for next month, saying that they do not believe that the traditional high season for agricultural film in China or the usual post-Ramadan pick-up in demand in Southeast Asia is likely to make any real impact on the market in September.