Chinese trader: Import PE has reached the bottom

Since early November, the presence of low priced PE cargoes from North America and India has been the centre of market attention, which attracted great buying interest. Other international suppliers have no choice but to match the move in order to maintain competitiveness. This has created a general softening trend in the market.

However, players this week believed that import PE to the country has reached the bottom with most deep-seas cargoes offered below the $1100/ton threshold have been sold out. A trader offers USA’s LLDPE film at $1130/ton CFR China, LC 90 days term informed, “We lifted prices by $30-50/ton from the previous weeks. Our USA suppliers claimed to have sold out available quantity and most offers in the market at the moment are from traders.” The source added that they achieve good number of deals at only $10/ton discount today.

The distribution market is leveraging the current energy and futures trading condition to maximise profit margins. Another international trader informed, “We give final call for our remaining USA and Brazilian’s LLDPE film cargoes at $1100/ton CFR China today. And we have sold out. Demand is healthy as buyers are expecting further price increment in the near term.”

Optimistic traders are looking at PE market on the $1200/ton direction if futures prices remain strong in the near term. Therefore, couple of major international suppliers decided to postpone their new offering to later date.