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Two major producers pioneered the firming trend in China right after the long weekend New Year Holiday by implementing fresh hike on the PE offers. In spite of the differences in price list, both makers are gaining the support from limited availability and strong upstream costs.

Thai maker introduced $5/ton increased on LLDPE and HDPE film from previous week, bringing the latest offers to $1290/ton for LLDPE film and $1350/ton for HDPE film, all based on CFR China, LC AS term. The producer also lifted mPE offers to $1315/ton with the same term.

A source close to the producer reported little respond from the market given the fact that many converters are facing difficulties in transferring higher raw material costs to end product, “However, we are having very limited quantity available, hence in no rush to adjust prices.” The source also reported to have oversold LDPE film cargoes before the holiday at $1185-1190/ton CFR China, therefore no cargoes for this grade this week.

Qatari producer is more aggressive on their cargoes, introducing increases of $40/ton on LLDPE film and $20/ton. Price list stand at $1190/ton and 1200/ton respectively, all based on CFR Chia, LC 60 days. Several deals have been concluded without any further discount as market finds these prices to be more reasonable. “It might become more challenging to attract deals if further hikes taking place in the coming weeks. Buyers started showing reluctance in accepting higher prices,” a source close to the producer said.