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According to market sources, a major local producer in Philippines have lifted their PP and PE offers to domestic buyers on the back of depreciation of the peso against the US dollars. Demand on the other hand, remains relatively calm, as buyers are not very aggressive to replenish material due to the on-going monsoon season.

A converter received LLDPE film offer at PHP3000/ton ($62/ton) hike and homo-PP at PHP2000/ton ($41/ton) increased said, “The peso has depreciated 3.3% which encouraged local maker to implement larger than usual hike on their cargoes and this might worsen in the near term. Buying interest is still not very strong though the peak seasonal demand is just around the corner.”

Another buyer commented, “Supply for LLDPE film in local market is relatively tight and this plays an important role in the recent price increment. We think trading activities might improve in the near term since buyers need to restock to prepare for the holidays season ahead.”

Local prices in Philippines currently stand at PHP65,000-68,000/ton ($1347-1410/ton) for LLDPE film and HDPE film and at PHP61,000-64,000/ton ($1265-1325/ton) for homo-PP injection and yarn, all based on FD Philippines, cash term, excluding VAT.