Thai's metallocene concluded lower in Indonesia

Southeast Asian producers have been holding very firm stance on metallocene PE (mPE) cargoes over the past weeks claiming limited supply and high production costs. However, sentiment seems loosen this week as several deals for Thailand cargoes are concluded at $40/ton lower than last week.

A converter purchased the parcel at $1380/ton CIF Indonesia, LC AS term said, “Offer is unchanged week on week, however the supplier agreed to larger than usual discount. We decided to take a small quantity for immediate need.”

Players believed that market has reached the peak and might witness additional discount in the near term, especially with ethylene costs start entering the correction period now.

Import mPE to Indonesia currently stand at $1380-1420/ton CIF, LC AS term for C8 based cargoes.