Thai traders stated to SSESSMENTS.COM that a local producer adjusted down PE offers amid the slow demand in the country. This week, HDPE Film and LLDPE Film C4 from a local producer decreased between THB500-1,000/ton ($15-30/ton) compared to last week's levels. While for LDPE Film, no comparison for this week’s offers as the producer did not have any offers last week. According to the traders, the producer is willing to sell PE cargoes at below THB29,500/ton-level for big quantity purchases. Despite the low prices, converters are not interested in taking the cargoes as the market remains quiet due to the Coronavirus pandemic. Hence, at the time of publication, no deals concluded for PE cargoes yet. As for PP, local offers for PP across all grades from another producer remain unchanged from last week, and some deals were concluded at the same level to the initial offers.
Demand-wise, the traders opined that Thai PE market will remain quiet as finished product demand is moving slowly in line slow trading activities due to the increase of Coronavirus cases. Moreover, the Thai government has announced a state emergency for at least one month starting from March 26 to curb the spread of Coronavirus. The government will allow authorities to ban travel, shutter and censor media and impose curfews. Hence, trading activities in polymer market will also be disrupted. On the supply side, LDPE supply at the local PE producer will be recovered in the near term and the producer will deliver the former orders, while the new orders are expected to be delivered at the end of April, SSESSMENTS.COM was told.
