PE prices in South East Asian markets have continued to fall this week despite China's recent upward trend. Malaysian, Indonesian and Thai businesses said demand remained weak due to weak purchasing power amid limited inventory available for most PE products including LDPE and LLDPE.
According to trading companies in Indonesia, a domestic producer has discounted IDR190,000-310,000 a tonne ($ 14-23 a tonne) on LLDPE film and injection prices earlier this week. This producer has kept the HDPE price stable due to limited supply.
An Indonesian plastic bottle maker said, "Domestic suppliers want to stabilize the price of PE because of the recent recovery in China. However, domestic demand remains disappointing despite the fact that Ramadan is coming. The market outlook is unclear as it depends on the state of demand. "
In Malaysia, finished products companies received domestic offers with lower prices compared to last week. A bag manufacturer commented, "The demand for our products is still quite slow, while we still have inventories from last month. Therefore, we have no plans to import large quantities at this time. "
A Malaysian trading company insists purchasing power is weak and says, "Buyers are not interested in importing new supplies in the context of sufficient supplies, especially for LLDPE film. The HDPE line is low, however, this factor can not push higher prices this week. "
In the domestic PE market in Thailand, the prices of most of the product lines also decreased. "Trading activity is rather limited before the Songkran holiday season is about to begin on April 13 and last for three days. We think domestic prices will certainly not recover until the business returns to full employment. "
As for the PE import market in the region, some companies said the rally in the Chinese market has not shown any impact because of competitive domestic prices that are putting pressure on imports. A trading firm said: "The downward trend is still sustained by declining prices from the Middle East. Buyers are offering lower prices even after recent declines. "