Purchasing interest for LLDPE film improved in local China market 

Chinese players have been holding back on purchasing activities throughout the week on the intention to monitor further market development in the post Single Day term before making fresh replenishment. Such move keeps local sentiment calm. Situation however witnesses a flip toward the end of the week, especially in Northern China area as buyers here return to make replenishment.

A healthy number of deals for LLDPE film has been reported as traders agreed to CNY100/ton ($15/ton) discount, bring spot offers to lower level than the most actively traded LLDPE futures contract 1801. “Our customers see the opportunity and quickly grasp some quantity. We are not expecting this condition to last as it merely a knee-jerk reaction to the price gap between spot and futures market,” a trader in the area commented.

At the meantime, several other sellers reported satisfactory number of deals with less hassle compared to the previous trading days, “Demand is still there, just that buyers are very selective in term of prices. We sold few hundred tons of locally produced coal based LLDPE film to agricultural film manufacturers without much negotiation,” another trader added.

Coal based LLDPE film traded in Northern China market in the range CNY9500-9510/ton ($‎1223-1224/ton without VAT), EXW China, cash term. Players are expecting only a small fluctuation range in the near term, citing that strong upstream and import market would play some roles in supporting the sentiment.