Initial PP, PE offers for April by SE Asian producers significantly reduced

24-Mar-10

Several producers in Southeast Asia have announced their initial April offers for both PP and PE to the regional market, with significant decreases. As per Chemorbis, in the PP market, a Thai producer announced initial April offers with decreases of US$50-60/ton from March to US$1340-1350/ton for homo-PP injection and raffia, US$1360/ton for PP film, all on a CIF SEA, cash basis. Another Southeast Asian producer also announced price cuts of $40/ton on homo-PP injection and raffia and $80/ton for PP film, bringing their initial April offers to US$1360/ton for homo-PP injection and raffia and to US$1390/ton for PP film, all on a CIF SEA, cash basis. A third regional producer announced initial April offers with a rollover from March at US$1430/ton CIF SEA, cash for homo-PP injection and raffia, commenting that they are seeing good demand from their regular customers. In the PE market, a major regional producer announced initial April offers at US$1550-1580/ton for LDPE film, US$1400/ton for LLDPE film and at US$1300/ton for HDPE film, all on a CIF SEA, cash basis. The offers represent declines from their March offers of US$40-70/ton for LDPE film, US$80/ton for LLDPE film and US$100/ton for HDPE film, while attributing their price cuts to poorer market sentiment. A Thai producer announced initial April offers for HDPE film at US$1340-1350/ton CIF SEA, cash, a decrease of US$50-60/ton when compared with their March offer levels. The producer pointed to slow demand as the reason for their price cuts. Another Southeast Asian producer also announced a US$50/ton price reduction on their initial April offers for LDPE film, bringing their new offers for this product to US$1600/ton CIF SEA, cash.