Thai maker opens new PE offers to China

Chinese players reported to have received fresh weekly offers for PE from a Thai producer with reduction on LDPE, while HDPE witness increases. The producer implemented $10/ton hike on HDPE cargoes from last week, reaching $1130/ton for film and $1140/ton for yarn grade, all based on CFR China, LC AS term. In contrast, LDPE offers witness $20/ton drop at $1180/ton for LDPE film and $1210/ton for LDPE heavy duty, with the same term.

Players commented that the drop in LDPE prices is a result of weak demand for this grade amid slow season and also pressure from newly started up plants in domestic ground. A trader said, “Domestic market is loosing steam and it appears that buyers have made sufficient replenishment over the past week. We do not expect the cargo pick up rate to be high since Iranian materials are available at bonded warehouse term at very competitive prices.”