Philippines Local PE Prices Extend Five-Week Rally to Two-Month Highs

The Philippines' local PE market continued its upward trend for the fifth consecutive week, with both HDPE film and LLDPE film prices reaching their highest levels in around two months. Higher upstream costs and firmer energy markets continued to support sellers and keep the market on a bullish path.

Over the five-week rally, local HDPE film prices have gained a total of 16%, while LLDPE film prices have increased by 14%.

This week, local LLDPE film was assessed at PHP84,000-90,000/ton, equivalent to $1,210-1,308/ton without VAT, on an ex-warehouse, cash basis including VAT. This represents a weekly increase of PHP2,000-3,000/ton ($33-49/ton).

Meanwhile, local HDPE film prices stood at PHP85,000-91,000/ton, or $1,235-1,322/ton without VAT, under the same terms. Prices moved up by PHP1,000-3,000/ton ($16-49/ton) from the previous week.

Higher Feedstock Costs Support PE Prices

Rising feedstock costs have been the main driver behind the continued increase in local PE prices. The recent recovery in crude oil futures has pushed naphtha and propane values higher, which has subsequently strengthened ethylene costs and increased support for PE producers and sellers.

Market sources expect spot HDPE and LLDPE prices to remain firm in the near term as long as upstream energy and feedstock markets continue to provide cost support.

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