Skip to content

Filter Options
Text :
Search Criteria :
Territory/Country :
Product Group/Product :
News Type :
My Favorites:
 

Softening ethylene putting pressure on PE prices in SEA

by ChemOrbis Editorial Team - content@chemorbis.com
  • 20/07/2015 (10:54)
Players in Southeast Asia report that PE prices are facing some downward pressure from softening ethylene costs and sluggish demand, with prices at the upper ends of the overall import ranges already beginning to see some downward movement. In addition, some late week price reductions in the nearby Chinese market have further boosted buyers’ confidence in their ability to obtain price relief in the coming weeks.

A trader offering Thai and Indian HDPE and LDPE film origins said that they are holding their prices steady for now while admitting that they anticipate decreases of around $10-20/ton next month. “We received some bids for HDPE film from Vietnamese buyers $40-50/ton below our offer levels, but we did not accept these bids as we find them to be too low,” the trader commented. Another trader offering Thai HDPE, LDPE and LLDPE film stated, “Demand is slow due to the holidays in Indonesia and Malaysia and prices are facing some downward pressure given weakening spot ethylene prices.”

A trader offering American HDPE film to the region said that they have already implemented some reductions on their prices. “These materials will take around one month to reach Southeast Asia and we are primarily aiming our offers at re-export converters,” the trader added. A trader offering different Middle Eastern LLDPE film origins to Vietnam commented, “We are getting some inquiries but are not concluding many deals as most of our customers are anticipating further decreases.” An agent of a Southeast Asian producer stated, “We are planning to announce our August prices next week. Our supplies are a bit limited, but in spite of this fact, it seems that most buyers are anticipating price decreases.”

A plastic bag manufacturer in the Philippines commented, “We are still waiting to receive some fresh offers from our suppliers. Given the recent softening in the spot ethylene market, we anticipate seeing lower PE prices by the end of the month.” A converter based in Thailand reported, “Our suppliers are showing a willingness to negotiate and we managed to receive LDPE film cargoes from a regional producer even though the supplier is reportedly short of material. The rainy season has been a bit delayed in Thailand, but we expect the rainy season to begin by next month.” An agricultural film manufacturer in Vietnam stated, “We only received a few offers for Middle Eastern LLDPE film this week. We are in no real hurry to track down additional offers as we believe that prices still have some room to come down.”
Free Trial
Member Login