LLDPE prices retreats further in China

Import LLDPE film to China fall further this week with players reported to have received offers for Saudi Arabia origin at $1100/ton, meanwhile non-dutiable cargoes have also matched the reduction, reaching $1140/ton, both at a CFR China, LC at sight term. This is a result of tremendous pressure from persistent low priced local materials, players said.

According to CommoPlast data, average local LLDPE film this week stand at CNY9000/ton ($1114/ton), which is about $30/ton below the average import prices.

A trader said, "It doesn't seem like local market is stabilizing and buyers are taking cautious stance ahead of the ChinaPlas. This sluggish condition might encourage domestic traders to cut offers, adding more pressure on import ground."

The PE market in China and Asia is moving in opposite direction with upstream ethylene market, which causing great confusion among players. "We are just not confident to make purchases despite the reductions. Especially with various discount schemes domestic producers are offering."

Import offers for LLDPE C4 film in China currently standing at $1100-1180/ton, CFR China, LC at sight term.