In Southeast Asia, prices for LDPE and LLDPE film have begun to lose some ground over the past few weeks as concerns about possible monetary tightening measures inside China have pressured sellers to agree to some discounts in order to move material, especially as prices for LDPE and LLDPE film had posted relatively large increases during the preceding rising trend.
According to data from ChemOrbis Price Wizard, spot prices on a CIF SEA, cash equivalent basis lost $22/ton for LDPE film and $48/ton for LLDPE film from their mid-November high points to the end of last week.
A Southeast Asian producer reported that they have sold out most of their December allocation for LDPE film to the regional markets at prices $20-50/ton below their initial offer levels for the month. The producer said that they conceded to these price reductions as their initial offers had not been meeting with much interest from buyers while adding that their largest discounts were given in the Vietnamese market as demand from Vietnam is relatively weaker than demand in other countries within the region.
A global producer reported that they concluded some deals for Middle Eastern LLDPE film with discounts of $10-20/ton from their initial offer levels for the month, saying that they lowered their prices in order to overcome buyers resistance. Inside the region, an Indonesian producer began the week by announcing a $50/ton reduction on their offers for LLDPE film, pointing to lower prices in the import market as the main reason for their price reductions. Meanwhile, distributors in Vietnam report that they slashed their offers for locally-held LLDPE film by $132-141/ton in hopes of spurring greater buying interest, adding that they are struggling to secure deals in spite of the fact that most locally-held import material has already been re-exported to other markets such as Myanmar and China. While sellers have been pressured to agree to price reductions in order to speed up their sales, most sellers nevertheless commented that they are not planning to concede to any major price decreases at the present given firmer upstream costs as well as relatively limited availability.
Spot ethylene prices on a CFR SEA basis have gained $30/ton since the start of the month while crude oil and naphtha prices are also hovering at high levels. In addition, some concerns have arisen that supplies may begin to tighten once more on news that ExxonMobil has had to shut its 600,000 tons/year PE plant in Singapore due to mechanical issues at the plant.
According to data from ChemOrbis Price Wizard, spot prices on a CIF SEA, cash equivalent basis lost $22/ton for LDPE film and $48/ton for LLDPE film from their mid-November high points to the end of last week.
A Southeast Asian producer reported that they have sold out most of their December allocation for LDPE film to the regional markets at prices $20-50/ton below their initial offer levels for the month. The producer said that they conceded to these price reductions as their initial offers had not been meeting with much interest from buyers while adding that their largest discounts were given in the Vietnamese market as demand from Vietnam is relatively weaker than demand in other countries within the region.
A global producer reported that they concluded some deals for Middle Eastern LLDPE film with discounts of $10-20/ton from their initial offer levels for the month, saying that they lowered their prices in order to overcome buyers resistance. Inside the region, an Indonesian producer began the week by announcing a $50/ton reduction on their offers for LLDPE film, pointing to lower prices in the import market as the main reason for their price reductions. Meanwhile, distributors in Vietnam report that they slashed their offers for locally-held LLDPE film by $132-141/ton in hopes of spurring greater buying interest, adding that they are struggling to secure deals in spite of the fact that most locally-held import material has already been re-exported to other markets such as Myanmar and China. While sellers have been pressured to agree to price reductions in order to speed up their sales, most sellers nevertheless commented that they are not planning to concede to any major price decreases at the present given firmer upstream costs as well as relatively limited availability.
Spot ethylene prices on a CFR SEA basis have gained $30/ton since the start of the month while crude oil and naphtha prices are also hovering at high levels. In addition, some concerns have arisen that supplies may begin to tighten once more on news that ExxonMobil has had to shut its 600,000 tons/year PE plant in Singapore due to mechanical issues at the plant.
