International PE maker planned lifting September shipment prices
International PE maker planned lifting September shipment prices

As ethylene costs in Asia surged to multi month high due to healthier demand from downstream markets and tightened supply; international PE producers are planning to lift September shipment offers in days in an attempt to cover production costs. Couple of producers has expressed the intention to implement a hike of as high as $60/ton.
Thailand HDPE and LLDPE film are offered at $1170-1180/ton CIF Vietnam, LC AS term, which is approximate $40/ton higher than initial offers given earlier last week. A trader offered the cargoes on behalf of the producer said, “Our customers are placing bids at $1140/ton and we need to consider this level since this is below the current ethylene prices. Demand is not very strong though we think market has no other choice but to accept higher price levels.”
Another Saudi Arabia producer also expressed intention to introduce higher prices for September shipment, which to be announced toward the end of the month, “China market is relatively tight on of HDPE and LLDPE, from which we might leverage additional support from strong ethylene costs,” a source close to the produce said.
Meanwhile, another Southeast Asian maker is also planning a $60/ton increment on LDPE cargoes for September delivery with a distributor said, “Our regular customers are still placing order in preparation for the year end season. Besides the upstream costs, our principal supplier is not having sales pressure.”