Thailand producer slashed PE offers to China amid soft demand

It is reported that major Thailand producer has slashed PE offers to China by $20-30/ton compared to last week due to persistently weak demand here. The adjustment is much in line with player’s expectation as buying interest for import cargoes has been soft amid the depreciation of the Chinese Yuan.

The following table showed the producer’s latest offers and week-on-week changes.

Sources are hoping to see further discounts on deals given the fact that deep-sea cargoes are retreating to below the $1150/ton threshold for LLDPE film cargoes. “Domestic converters are very cautious about new purchases due to the weakened Chinese Yuan against the US dollar and escalated trade tension. We are not confident about the near term outlook,” a distributor said.