Southeast Asian mPE inched lower in China, demand remains subdue

It is reported that couple of major Southeast Asian producer has announced new mPE offers to China on the first trading day of the week with some reductions on the back of weak buying interest.

Singaporean mPE emerged at stable to $20/ton softer week on week, bringing the latest price list to $1340-1350/ton CFR China, LC AS term. Distributors are complaining about difficulties facing in attracting buying interest given pressure from other origin at competitive levels.

In fact, Thailand mPE re-appear in the market this week after several weeks absence as the producer starts commercial run at the new 400,000 tons/year mPE unit today. Offers for the cargoes stand below the $1300/ton threshold, at $1290/ton CFR China term with room for negotiation open wide. “mPE market in under substantial pressure due to weakened LLDPE c4 market. Our customers are not responding even at the current offers. We are discussing with buyers and might implement additional discount to entice purchasing interest.”