Southeast Asia metallocene PE dashes lower in Indonesia, China

A couple of Southeast Asian producers has slashed import metallocene PE (mPE) offers to China and Indonesia as a result of persistent sluggish buying interest in these markets. The latest adjustments, however, attracted little buying interest, especially in Indonesia as Ramadan season demand remains below expectation.

Singaporean mPE drop $30-40/ton from last month to $1370-1380/ton CFR China, and to $1400/ton CIF Indonesia, all based on LC AS term. Meanwhile, Thailand mPE is offered at $1410/ton CIF Indonesia, down $40/ton month on month.

An Indonesian buyer said, “We have procured comfortable stock since last month and in no rush to make fresh replenishment. Demand for the end products is much slower than expected due to the stringent tax scheme. We expect prices to extend the weakening trend in the near term.”

In China, the strengthening Chinese Yuan against the US dollar has not stimulated the demand. Most buyers are only active in the local ground while others are sourcing from Thailand at more competitive levels. “Sales have been slow and we fear that more discounts must emerge in order to close deals,” a trader reported.