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The import LLDPE film market in China goes down sharply this week in spite of firmer upstream ethylene costs, as demand recovered from the long Lunar New Year holiday at a pretty slow pace. Compared to the first week of February 2018, the average import LLDPE film based on CFR China, LC 0-90 days term has fallen nearly $65/ton, CommoPlast data showed.

Many converters in the country, including those in the agricultural film sector, which is in its traditional high demand season, are still unable to restore regular operation rate on the insufficient workforce. “Many of our customers have been switching to local cargoes as overseas sellers refused to offer any discount previously,” a trader said.

On the final trading day of the week, major Saudi Arabia maker slashes LLDPE film prices by $50-60/ton compared to last month, bringing latest price list to $1160/ton CFR China, LC AS term. “We proceed with purchases immediately without any negotiation. We think this price level is very competitive for regular Saudi cargoes,” a trader commented.

In the meantime, Indian LLDPE film fell another $20/ton from last week, to $1140/ton CFR China, LC AS and deals have been achieved, too. “We also received offers for deep-seas USA LLDPE film cargoes at $1120/ton CFR China term, however, we are considering whether to proceed as it is jumbo-bag packaging,” another buyer commented.

While many other suppliers have yet to adjust offers, sources are expecting a contagious trend from the mentioned cargoes. However, the lower end of the overall price range might have set the floor-price, which might pull the upper end down, sources said.