SEA market quiet ahead of ChinaPlas and holidays, suppliers plan new increases

The Southeast Asian market opens the first trading day of the week with limited new offers and transaction as many players are away for the major plastics and rubber exhibition in the region – ChinaPlas. However, suppliers have no intention to shelve the plan to hold firmer stance on the new prices.

“Major Thailand metallocene PE supplier has given new price indication with $70/ton increased from last week, however, we find it very hard to accept. The Ramadan season is just around the corner and very likely that the current momentum might lose steam in May,” an Indonesian buyer informed.

Vietnamese buyers are mostly on the wait and see mood given the two major holidays taking place on 25 and 30 April. “We have not given any offers so far. The market is quiet and our latest attempt to lift PE offers has not resulted in any satisfactory outcome. At the moment, we prefer to monitor further development while keeping prices steady,” a trader offered Middle Eastern HDPE film at $1345/ton CIF Vietnam said.

Another international trader added, “We might not offer any import homo-PP to Southeast Asia this week, as we are attending ChinaPlas. In the meantime, we are looking at $10 – 20/ton increased on the next price announcement since availability for Middle Eastern cargoes is rather tight. Customers might have no choice but the accept the hike.” 

There is a strong determination among PP and PE suppliers to lift offers in the coming days with primary support coming from the upstream market. “We also see more activities in China market these days, and hope to leverage on this movement,” a Saudi producer said. Yet, regional buyers are not responding very positively to the recent hike attempt, signalling more hurdles ahead for suppliers to achieve price target as market enter the traditional off-peak season.