September PE quotes for Southeast Asia tend to reverse due to demand impacted by Covid

PE prices in Southeast Asia went up from mid-June to late-July. However, since the beginning of August, a steady trend has permeated the market due to a combination of mixed factors including demand. End-consumer demand continues to weaken, freight rates are high, and supply decreases due to lower plant operating capacity.

On the other hand, PE producers' initial September quotes fell month-on-month as demand continued to be impacted by the third Covid wave, prompting countries in the region to adopt severe measures. stricter.
For the week ending August 20, import prices from all origins are estimated to be unchanged from the previous week, at $1340-1450/ton LDPE film, $1120-1200/ton HDPE film, and 1150-1230 USD/ton LLDPE film, all by Southeast Asia CIF method, cash.

Initial September quote reduced to 50 USD/ton

Regional market participants say September quotes have dropped.

A regional producer has announced new quotes for Indonesia with monthly reductions of $30/ton LDPE and $20/ton HDPE blow molding. Only the HDPE film quote is unchanged from the previous month.

Meanwhile, a Vietnamese trader said he had offered to sell new shipments of HDPE film from Saudi Arabia at $1150/ton and LLDPE film for $1,230/ton CIF, cash.

This trader commented: “PE price has dropped by 50 USD/ton from last month. Manufacturers do not want to sell to Southeast Asia due to low prices there. Moreover, freight charges are high and train booking is difficult. In terms of demand, there is no improvement due to the blockade orders. Buyers are not interested in buying more materials at this time.”

A Vietnamese finished product manufacturer said it had received a quote for HDPE blow molding from Saudi Arabia and Thailand at $1,140/ton and $1,130/ton CIF, respectively. The producer said: “The price of HDPE blow molding has decreased by $30-40/ton from last month. Our capacity is currently only 25%.”