Middle Eastern producers lifted August PE offers to Indonesia

Several Middle Eastern producers have announced fresh PE offers to Indonesia for August shipment with increases from last month in spite of fierce competition from domestic cargoes. Import HDPE film for this origin to Indonesia currently reaches $1090-1110/ton while LLDPE film stand at $1100-1150/ton, all based on CIF Indonesia, LC AS term.

An international trader offered Saudi’s PE at $1110/ton for HDPE film and $1125/ton for LLDPE film, CIF Indonesia said, “Local producers have lifted prices this week, creating a reasonable gap with import material, from which we might be able to achieve part of the hike target. Many of our customers are still not active, claiming mediocre end product business and comfortable supply.”

Another producer maintain offers for both HDPE and LLDPE film at $1100/ton with the same term added, “Buyers are asking for discounts and we have no plan to match the bids due to limited availability and healthier margins obtained in China market.” The source expected to close deals at offered levels.

Buyers are still hoping to make purchases at below the $1100/ton threshold, which was claimed to be proportionate with local materials. A converter said, “We plan to accept Middle Eastern cargoes in the range $1080-1100/ton CIF term. Export business for our end product is a little slow and we would only procure a small quantity of raw material.”