Chinese players: LDPE film market might stabilize on normalizing supply

The LDPE film market in China has been following the downtrend since beginning of the year on lengthy supply and persistent weak demand. However, market seems to have digested most of the inventories this week, from which players here reported seeing less availability for both film and heavy-duty grades.

In term prices, domestic LDPE film based on EXW China, excluding VAT, cash term showed signs of stabilization for two weeks in a row. Despite the average import prices are still lower than previous week, Chinese suppliers hope that firmer local market would elevate offers from international sellers.

A Qatari maker lifted LDPE film offers to China this week by $10/ton to $1140/ton CFR China, LC 90 days term with a trader said, “Buying interest is not very strong, however we think the downside is now very limited. The high demand season is still way to come, therefore, there might not be significant rebound but rather stabilization.”

This week, more converters in the agriculture greenhouse sector return to make replenishment. A trader sold Iranian LDPE heavy duty at $1170/ton CFR China, TT in advance term added, “We are not having cargoes on and now though couples of our regular customers are still asking for material. We have to wait for Iranian suppliers to come back from the Ramadan holidays before could announce new prices. We expect moderate increases in the next price opening.”