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China market opens the first trading week of the year on firmer notes, which surprised many conservative players, who were initially calling for a more of stable track. On an average, import HDPE film to China inched approximate $20/ton higher week on week while LLDPE film gained $10/ton, data from CommoPlast Price Index showed.

Though import HDPE film to China current traded at more than $140/ton higher than LLDPE film, players are still looking at possible further increases in the near term. “There are no Iranian cargoes available at the moment. With the persistent production issues and the ongoing unrest, it become uncertain than ever on whether Iranian suppliers could ensure stable supply in 2018,” a Chinese buyer said. The source added that market might continue to escalate in the near term in the absence of USA cargoes, too.

Strong ethylene costs due to limited supply also support the downstream PE market, sources said. It is reported that demand for spot ethylene in China remains healthy as buyers are seeking cargoes ahead of the maintenance shutdown season in March.

Both Thailand and Qatar producers have announced fresh offers for PE with increases of up to $40/ton from last month. “We have oversold LDPE film cargoes in the previous week, hence we only have mPE, HDPE and LLDPE film this time. Buyers are not very responsive, however we are in no rush to adjust our offers,” a source close to the Thai maker said. The producer’s price list stand at $1290/ton for LLDPE film, $1350/ton for HDPE film and $1315/ton for mPE, all based on CFR China, LC AS term.

At the moment, Chinese sellers are speculating on the pre-Lunar New Year replenishment, which might soon to take place. “If buyers are coming back toward the end of the month to make another purchases, the current firming trend might spread into February,” another trader commented.

Import LLDPE film to China currently stand at $1140-1295/ton and HDPE film at $1270-1370/ton, CFR China, LC AS term.