Southeast Asian major lifted mPE offers to Indonesia, hike accepted

Two major Southeast Asian producers reportedly announced fresh offers for metallocene PE to Indonesia this week with $70/ton increased month on month, reaching $1370/ton, CIF Indonesia, LC AS term for both Singapore and Thailand origin.

Though the absurd hike amazed buyers at first, deals have been soon realized as market face upward pressure from the shutdown at PTTGC’s new PE line in addition to strong upstream costs. “We were informed that prices might increase another $50-100/ton in the near term, hence decided to make replenishment. Demand for our end product is regular,” a converter informed.

A producer added, “We have depleted a considerable amount of inventories over the past week. Demand in China is healthy as buyers are looking for alternative solution to soaring HDPE and LLDPE film prices. We believed there are still rooms for further price increment.”