Thailand PE offered to China at stable to softer levels

It is reported that a major Thailand producer has announced fresh PE offers to China at mostly unchanged levels compared to the pre-Lunar New Year week, except for a reduction of $35/ton on LLDPE film cargoes. The reduction emerged amid slower than expected demand for import cargoes, coupled with weak upstream market.

Latest price list stands at $1440/ton for HDPE film and yarn, $1285/ton for LLDPE film, $1330/ton for metallocene PE (mPE) and at $1290/ton for LDPE film, all based on CFR China, LC AS term.

In spite of the persistent tight supply condition across Asia, the latest offers for HDPE are facing stiff resistance from buyers. “This is because we are seeing some Saudi Arabia cargoes have been concluded at nearly $100/ton lower. Ethylene has fallen considerably and therefore, we do expect some downward adjustment from the supplier,” a source commented.