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A heavy downpour that took a toll on the agriculture sector in the province of Shandong China earlier this week is expected to boost demand for LLDPE and LDPE film further, Chinese traders said. Many sellers claimed seeing better movement in the domestic PE sector this week as agriculture film converters ramp up production in an expectation that farmers would need to regrow the sows. 

According to local medias, the flood affected residential buildings, farmland, greenhouses and aquaculture farms in several villages around the Mihe and Dan rivers, including Shouguang, Weifang village. The damages have not been quantified, however, farmers are suffering from huge loses.

At the moment, spot LLDPE film traded in Northern China area is traded in the range CNY9500-9700 ($1197-1223 without VAT), while LDPE film is at CNY9550-10300/ton ($1204-1298 without VAT) EXW China, cash equivalent. 

“Many of our customers in the mulch film sectors are asking for cargoes today after local producers announced the downward adjustment. We expect the market to be busier in days ahead,” said, a trader.

Sharing the same expectation, other traders are scouting around for materials priced at the lower end of the overall range. A medium scale local trader added, “Availability is not ample. It seems like everyone just hold back on the cargoes since demand prospect looks bright. We only managed to stock up a small quantity.”