Import LLDPE film to China journey south

Since Chinese players resumed working after the long Lunar New Year holiday, import LLDPE film to the country hold very firm on the back of strong ethylene costs and bullish demand expectation from the agriculture film sector. However, post holiday replenishment activities fell short of expectation and despite tightening overseas supply, international suppliers started down adjusting their offers to the country in order to entice buying interest.

According to CommoPlast data, average import LLDPE film to China drops approximate $60/ton week on week, reflecting the weakness in buying interest. In fact, deep-seas cargoes from Brazil and USA are concluded below the $1150/ton threshold, based on CFR China, LC 0-90 days term. 

A trader sold USA LLDPE film at $1140/ton CFR China, LC 90 days term said, “We slashed our prices by $50/ton from last month despite the short lead time for this parcels. Demand from the agricultural film sector is just so disappointed as persistent weak futures market casted tremendous pressure on spot ground. We are just not so optimistic about the near term outlook.”

Another Middle Eastern producer down adjusted their PE offers to the country twice this week, accumulating a total drop of $30/ton from initial offers on LLDPE film cargoes, touching $1180/ton CFR China, LC AS term. A source close to the producer informed, “Domestic prices fell six straight days, making import cargoes less competitive. We were not able to conclude any deals at the earlier prices. Besides, softening ethylene costs have also dampened market confident.”

Converters are not receiving satisfactory number of new orders for end products, forcing many to keep operation rate low and deter interest for fresh replenishment despite the lack of availability from international sellers. Supply might further tighten in the coming month, yet the impact on the general trend could be moderated if demand persist the current condition. Import LLDPE film to China currently stand at $1140 – 1230/ton CFR China, LC 0-90 days term.