CommoPlast

Persistent weak demand pressure import LLDPE film to Southeast Asia

Persistent weak demand pressure import LLDPE film to Southeast Asia



Over the past couple of weeks, demand for LLDPE film across the Southeast Asia region are visibly weaker as buyers complained about slow end product businesses and improved supply condition. Recently, weakening ethylene costs have evoked even more caution amongst buyers, which in turn, putting tremendous pressure on the other end of the market – suppliers.

In fact, several Middle Eastern producers have already down adjusted or considering to cut their offers for October delivery cargoes to speed up sales. One of the producers informed, “We stepped back on our LLDPE film offers to Vietnam twice since last week, accumulating total reduction of $40/ton from initial offers, yet we only managed to close a small quantity.”

Another producer, whose LLDPE film offers stood at $1170-1180/ton CIF Southeast Asia, LC AS term last week commented, “We have yet to announce new prices this week. One thing is that demand is very weak in Southeast Asia. We were hoping that stronger energy values and unexpected shutdown at one of the crackers in the region would support the sentiment; however, if this condition persist, we might need to implement measures to smoothen sales.”

Regional players are not very optimistic about the near term outlook despite couple of shutdowns are taking place with a trader said, “We were offered Saudi Arabia LLDPE film at $1180/ton but we decided not to buy as domestic market is very slow. We fear of further reduction in the near term if demand condition does not improve.”

Import LLDPE film to Southeast Asia currently stand at $1180-1200/ton CIF, LC AS term.