Thai PE remained on stable to soft track to China; deals concluded at large reduction

A major Thailand producer maintains PE offers to China on the stable to softer track this week in the face of persistently sluggish demand condition. Despite the constant claim of having limited supply, the producer apparently has given in by conceding to $40/ton discount on deals for HDPE and LDPE cargoes.

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

In fact, Chinese buyers reported having purchased these cargoes at $1350/ton or HDPE film, $1360/ton for HDPE yarn, $1150/ton for LDPE film and at $1170/ton for LDPE heavy duty, all based on CFR China, LC AS term.

“With the trade environment and the weakening Chinese Yuan, we prefer to reduce risk by procuring just a small quantity. In the meantime, we are also talking with other suppliers for lower prices on deep-sea cargoes,” a trader said.