Singaporean metallocene PE jumped three digits in Indonesia, China

Following the hike in the upstream ethylene market and the tightening availability of USA cargoes due to the mass shutdown, a major Singaporean producer implements drastic increases on metallocene PE (mPE) cargoes to both Indonesia and China this week. 

The latest offers to China registered a $200/ton hike to $1590-1620/ton depending on the grade, CFR China, LC AS term.

Meanwhile, the offers to Indonesia jumped $140-170/ton week-on-week to $1610-1650/ton depending on the grade, CIF Indonesia, LC AS term. 

The initial response from Chinese customers is not as positive as expected. Manufacturers in the agriculture film sector prefer to wait on the sideline due to the inability to transfer the hiking raw material costs to end-product prices. Sources said that some converters in the Northern China market are even selling on-hand stocks, causing an even more sluggish sentiment. 

“The current prices are too high and risky. We are waiting for cargoes purchased prior to the Lunar New Year to arrive while refraining from new purchases. Local China market is not all great. Many traders are focusing on the export ground because of the better demand,” a Chinese trader informed.