Traders offer discount on import HDPE film to China

The import HDPE film market in China has been following a relatively stable trend over the past one month while other PE film grades fell into the softening track. However, today, couple of traders decided to offers discounts from the official price list given by producers in an attempt to encourage purchases and examine market acceptance levels.

Post holiday demand in China has been really disappointing to many local and international suppliers despite strong upstream costs. A Saudi Arabia producer announced March shipment for HDPE film at $1160/ton CFR China earlier this week; yet traders offer same cargoes at $20/ton lower today. A market source added, “There are some South Africa cargoes traded below the $1100/ton threshold, however, we could not match such prices at the moment. Customers are very cautious about making fresh purchases considering the recent development on the Dalian Commodity Exchange.”

Even offers for Thailand’s HDPE film are now $40/ton below producer’s price list, reaching $1160/ton CFR China, LC AS term. A trader source said, “Local inventory is high while converters are not willing to accept prices around the $1200/ton threshold as it would be higher than domestic material. Even after the price adjustment, we only managed to conclude few deals.”

Looking ahead, players commented that the fall in futures prices might be nearing the bottom and with the rebound, demand in spot ground would pick up. Import HDPE film in China at the moment stand at $1080-1210/ton, CFR China, LC 0-90 days term.