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Chinese players reported to have received fresh weekly PE offers from a major Thailand producer today. Latest prices are rather stable to $20/ton higher from the previous offerings thanks to the constant support from the tight supply condition.

The prices list is shown in the following table:

Demand in China is retreating ahead of the long Lunar New Year holiday and it appears that buying interest for HDPE cargoes above the $1400/ton threshold hold relatively short. “Supply for HDPE is still tight, just that the price risk is too high and we refrain from bearing at the moment. We might only take action after the holiday,” a trader said.

At the meantime, the maker is open to negotiation for LLDPE film cargoes. A source close to the producer added, “We are not having large allocation given the production issues at the new PE unit and the upcoming shutdown. Room for negotiation is there, just that we might not be able to concede to any large discount.”