Jan PE offers from Middle East to Malaysia US$100 above December offer

13-Jan-10

A Middle Eastern producer announced a US$100-110/ton increase in January PE offers to Malaysia this week, vs their December offer levels, as per Chemorbis. This was in line with the market expectations given the sharp increase in import prices recently recorded in regional import prices, resulting in new offers at US$1380/ton CIF Malaysia, cash for HDPE film and blow moulding; US$1450-1460/ton with the same terms for LLDPE film. Import PE prices have been moving higher in Asia recently dueto limited availability and escalating feedstock costs. Spot ethylene prices in Southeast Asia have gained nearly US$80/ton over the past week to US$1310-1315/ton CFR SEA, suggesting a theoretical break-even price of US$1460-1465/ton on CIF SEA, cash basis.