Southeast Asian, Mid-Eastern producers reduce July PE prices to SEA
A Thai producer said that they lowered their prices by $50/ton for HDPE film and blow moulding and by $30/ton for injection, citing slower demand from Indonesia and Malaysia during Ramadan as the main reason for their price reduction. A distributor based in Malaysia reported receiving July LDPE offers from a Southeast Asian producer with a $40/ton reduction from June.
A source from another regional producer, who also lowered their offers for HDPE and LDPE film, stated, “Demand remains sluggish even after our price reductions and we have not been able to conclude many deals so far. Most buyers seem to be keeping to the sidelines for now in anticipation of further price reductions.” A plastic bag manufacturer in Thailand reported receiving an offer for LDPE film from a regional producer with a $60/ton decrease from the prior month. “Demand for our end products is not satisfactory these days as we are facing increasing competition from Chinese goods,” the buyer complained.
In addition to lower offers from regional producers, several Middle Eastern producers have also announced lower July PE prices to the region. “We reduced our prices by $20/ton for LLDPE film and by $10/ton for HDPE film from June. We do not expect to experience any delays in our deliveries during Ramadan and we are hopeful that demand will pick up next month as many buyers have been away from the market for some time and will eventually need to replenish,” a source at a Middle Eastern producer commented.
A converter based in Malaysia reported receiving an offer for LLDPE from another Middle Eastern supplier with a $10/ton reduction. "We are not content with the state of demand for our end products these days. We have been able to expand our export business recently due to the depreciation of the ringgit, but we do not believe these export opportunities will persist over the long term,” the buyer stated.
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