Thai major continue cutting LLDPE film offer to China

As reported earlier this week, a major Thailand producer has announced fresh weekly PE offers to China with $30/ton reduction on the back of stiff market resistance. However, it seems that the cut is not enough to draw buyers back to make replenishment, from which additional $50/ton reduction is introduced this morning, bringing latest LLDPE film offers to $1300/ton CFR China, LC AS term. Other grades remain largely stable.

Buyers are still reluctant to accept such high prices citing the risk from continuous falling futures market this week. A source close to the producer informed, “Our offers were too high in the previous week and it is hard to attract sales. We think market might still remain firm in the near term considering the current upstream costs.”