19 July 2013 07:34 [Source: ICIS news]
SINGAPORE (ICIS)--Spot low density polyethylene (LDPE) prices in southeast Asia and China increased this week on tighter supply, following a force majeure declared by Thailand’s PTT Global Chemical on supply of the polymer, industry sources said on Friday.
PTTGC declared a halt on LDPE supply on 17 July as its 300,000 tonne/year LDPE plant in Map Ta Phut, Thailand, was taken off line in the middle of last week, and is expected to be down for more than three months, according to a source close to the producer.
In Indonesia, imported LDPE coating and film grades were offered at $1,850/tonne (€1,406/tonne) delivered (DEL) and $1,650-1,680/tonne DEL in the domestic market, $40-80/tonne higher from last week, local distributors said.
Malaysia-based LDPE producer Lotte Chemical Titan had increased its LDPE film grade offer to $1,600/tonne CFR (cost & freight) Indonesia for August shipment, up by around $50/tonne from its offer announced in end-June, an Indonesian distributor said.
LDPE supply in southeast Asia is expected to tighten further, as Malaysian producer Petlin is scheduled to shut its 255,000 tonne/year plant in Terengganu in the third quarter for maintenance, the Indonesian trader said.
Petlin is expected to reduce its export allocations for August shipment in preparation for its plant turnaround, the Indonesian distributor said.
Offers for Asian and Middle Eastern LDPE grades have risen by around $20/tonne this week to $1,490-1,500/tonne CFR China, Chinese traders said.
PTTGC had approached some Chinese traders after its plant outage, looking to buy back some of its LDPE cargoes at $1,560/tonne FOB (free on board) China, a Chinese trader said.
PTTGC, Petlin and Lotte Chemical Titan were not immediately available for comment.
Additional reporting by Angie Li
($1 = €0.76)
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