Chinese players: Import LDPE film might have reached the bottom

After fifteen weeks of continuous weakening that shred approximate $155/ton in value, import LDPE film to China might have reached the cyclical bottom, players said. As a result, Chinese buyers are actively returning to make purchases as international suppliers conceded to discounts.

A good number of deals for import LDPE film are observed in China today at the range $1120-1150/ton CFR, LC AS term while offers at the upper end of the overall price range are facing stiff resistance.

A trader purchased 1000 tons of Indian LDPE film at $1130/ton said, “For smaller quantity, buyers could obtain price at $1150/ton. We have not made any purchased for several weeks and we need to build some inventory for the post Lunar New Year period.”

Another buyer purchased few hundred tons of Russian LDPE film at $1130/ton added, “We feel that these prices are very competitive as they are even lower than current LLDPE film offers. Real demand from converter is still mediocre, and we hope to see better condition in the coming month with pre-Lunar New Year replenishment activities.”

Purchases for USA and Brazilian LDPE film are also satisfactory, sources said. On the other hand, offers at the upper end of the overall range are not gaining much interest. Major Qatari maker stepped back on the price list by $10/ton week on week, bringing latest offer to $1180/ton CFR China, LC 60 days term. “Our regular customers are not satisfied with the reduction citing the availability of more competitive cargoes. We have yet to take any action, yet we believed that prices might not fall any further since buyers have accepted the existing lower end,” a distributor commented.

Import LDPE film to China currently stands at $1120-1210/ton, CFR China LC 0 – 60 days term.