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As demand for import cargoes from Chinese buyers continue to diminish ahead of the long National Day holiday, overseas sellers paddle up effort to attract buying interest by introducing additional cuts on PE cargoes on the first trading day of the week. In contrast, buyers are not showing strong respond pointing to the available of competitive local cargoes.

A major Thailand producer cuts offers for HDPE and LDPE by $30-40/ton, reaching $1260/ton for HDPE film, $1265/ton for HDPE yarn and $1290/ton for LDPE film, all based on CFR China, LC AS term. LLDPE film witnesses another nosedive of $80/ton at $1270/ton with the same term. “The prompt shipment schedule does not seems to play an upper hand today as buyers are putting attention on local market as well as the presence of more competitive Middle Eastern cargoes. We fear that more discounts must emerge if the maker hope to deplete inventories before buyers go off for the holiday,” a trader commented.

In fact, a Qatari producer cut PE prices for the third time this month, bringing LLDPE film and HDPE blow offers down by another $10-20/ton week on week, reaching $1170/ton and $1160/ton respectively. The producer also reportedly cut LDPE film prices by $20-30/ton to $1220-1230/ton, all based on CFR China, LC AS term.

“The Chinese Yuan is depreciating and we are no longer have the advantage of currency. We are able to sell well in domestic market, however might postpone replenishment slightly, hoping to catch better prices,” another trader reported.

Trading activities in China might continue to weaken toward the end of the week, especially in the import ground, in line with the impending National Day holiday. This might put additional pressure on international suppliers, who have been pushing PE offers to China to multi-months high levels earlier this month. However, there is still strong hope that tight supply and strong ethylene market might help to limit the extent of any price correction.