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After several weeks of strong purchasing activities that attract many overseas cargoes to China and send prices to multi month high, sentiment in China started waning down in recent days. Market is turning sluggish, which encourage traders to step back on import PE offers to smoothen sales process.

On an average, import PE offers to China has edged $30-40/ton lower week on week for specific origins, including Saudi Arabia, Qatar, Iran and Thailand. However, these moves are solely from traders. Players commented that such adjustment is necessary as import PE offers nearing the $1300/ton mark are ways above acceptance level. “Market has to come back to the realistic levels, especially with local market loosing momentum since last week,” a trader said. The source reportedly cut offers for Thailand HDPE film and yarn by $40/ton from official price list, to $1250/ton CFR China, LC AS term.

Another trader slashed prices for Iranian PE cargoes by $30-40/ton, bringing the offers to $1220/ton for HDPE film, $1180/ton for HDPE blow molding and $1240/ton for LDPE film, CFR China, TT in advance term. “We have not been able to conclude any deal for the past week. Iranian cargoes are facing serious delay due to production issues, hence not in favor of buyers,” the source said.

Trading activities in China might weaken further in the coming days as players prepare to go off for the long National Day celebration. At the moment, most pre-holiday replenishments are concentrating in local ground, as buyers are not comfortable with the current import offers. “We fear that import PE offers might need to come back to the range $1180-1200/ton in order to attract sales. This is because local inventories are piling up and might continue to accumulate after the long holiday, easing the tightness condition,” a trader, who cut offers for Saudi LLDPE film by $30/ton to $1240/ton CFR China said.