The import PE market in Southeast Asia has been on a steady upward trend since mid-September, driven by strong energy values and higher demand from finished product producers.
Meanwhile, traders said the supply of LDPE continues to be scarcer compared to other grades of LLDPE and HDPE in the region.
For the week ending October 15, the general price level of imported PE was estimated at USD 1600-1670/ton LDPE film, USD 1290-1380/ton LLDPE film and USD 1180-1290/ton HDPE film, respectively. method CIF Southeast Asia, cash. Compared to last week, the price has increased from 10 USD/ton to 70 USD/ton.
High energy value is said to be the main reason behind the bull run
Most market participants in the region attribute the strong energy markets to the steady upswing in PE prices.
China’s power crisis due to tight coal supplies as well as record-high natural gas prices in Europe have pushed commodity prices higher. According to ChemOrbis Price Instrument, European ICE Brent futures prices have fluctuated at a three-year high, while NYMEX (WTI) oil futures prices have remained at a seven-year high.
Demand has been improved by easing restrictions
As Southeast Asian countries are getting out of lockdowns and restrictions related to Covid-19, demand has started to improve, especially from those in the country. finished product manufacturer. Adding to the cost-driven price gains is demand.
“The easing of COVID-19-related lockdowns in major cities in the region has increased production output and demand for raw materials,” said a Philippine finished product producer. Demand has picked up as coronavirus-related lockdowns and restrictions have been eased thanks to higher vaccination rates. Import PE quotes continued to move up this week due to limited supply and higher olefin prices.”
Meanwhile, the year-end shopping season is approaching which is expected to bring more support on the demand side as some traders say buyers have started placing orders early to avoid being affected by the congestion. congestion in Northeast Asia.
