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Import PE market in China has been persisting on the softening track throughout the second quarter of the year, as demand was weaker than expected amid bloated supply. However, the trend is ended this month with buying interest seems revived considerably under the influence of tighter availability and surging sentiment in the futures trading.

Import LLDPE and LDPE film witness the most visible hike, gaining about $60-65/ton compared to the bottom level recorded in early July, according to CommoPlast Price Index. A good number of deals are reported this week even with such rapid upward movement.

A trader sold 990 tons of Iranian LDPE film at $1170/ton CFR China, TT in advance term said, “Many converters are returning to make replenishment, therefore we lifted offer by $55/ton week on week. We did not expect market to accept the hike, and to surprise, we manage to deplete the cargoes so easily.” Several Iranian HDPE film cargoes are concluded at $45/ton increased at $1125/ton with the same term.

Another trade sold 1000 tons of USA origin HDPE blow molding cargoes at $1080/ton CFR China, LC 90 days term, which is $50/ton higher said, “Buyers are asking for discount and we refused to enter any negotiation. Market is on the up-trend and likely to persist in the near term. Such level might no longer available in the coming week.”

Converters in the flexible packaging sector located in Southern China are also becoming more active, accepting import cargoes at $1135-1140/ton for Middle Eastern origin and at $1060/ton for Indian origin, all based on CFR China, LC AS. However, such drastic and quick up-turn also brings concerns regarding outlook in quarter 4, when most of these cargoes would have arrived.