Import HDPE blow molding to China surged to multi months high

Import HDPE blow molding to China climbed to multi month high levels this week, surging more than $135/ton compared to beginning of the year, bringing the average prices to about $1335/ton CFR China, LC AS equivalent, according to CommoPlast Price Index.

Import HDPE blow molding to China is now catching up with HDPE film after a long period of being traded at lower levels. One of the main factors supporting such development is the recent firming upstream ethylene cost stemming from strong buying interest and limited supply ahead of the maintenance shutdown season.

Chinese players are also complaining about the limited availability of HDPE blow molding cargoes in the market, especially for Iranian cargoes. “At the meantime, a number of our customers are sourcing this cargoes to mix with HDPE film and HDPE pipe in manufacturing respective end products, with hope to reduce production costs. As a result, pushing prices higher,” a trader informed.

However, buyers appear to have less interest in cargoes offered above the $1350/ton threshold, citing the rapid fall in profit margins. While market might remain firm in the near term, room for further increases is narrowing down if buyers continue to resist higher levels.

Import HDPE blow molding to China currently stand at $1290-1380/ton CFR China, LC 0-90 days term.