Southeast Asian major cuts mPE offers to China amid weak buying appetite

It is reported that a major Southeast Asian producer has announced fresh metallocene PE (mPE) offers to China with $20/ton reduction month on month, reaching $1320 – 1330/ton CFR China, LC AS term.

Weak buying interest is the primary factor dragging prices lower despite strong upstream ethylene costs. “Deals concluded remain disappointed even with the price cuts. Our customers are not eager to make replenishment amid low LLDPE c4 film costs,” a distributor said. Currently, import LLDPE c4 film to China stand in the range $1140 – 1185/ton, CFR China, LC 0 – 90 days term. Large price gap between mPE and regular LLDPE film might encourage buyers to use more on the cheaper grade to cut production costs.

Sales pressure might pile up for the supplier if the condition persists in the near term, sources acclaimed. “We do expect to see further reduction to emerge as a result,” a source added.