More overseas suppliers stepped back on PE offers to China

After several major international suppliers slashed LLDPE film offers to China late last week, more sellers are joining the wagon regardless of the stronger upstream ethylene costs. In fact, both Thailand and Qatari producers announced fresh weekly prices with up to $40/ton reduction, and yet buyers are not aggressive in scouting for cargoes.

The producers’ new prices and changes are shown in the following table:

Bloated inventories in the domestic market resulted from slower than expected recovery in demand undermines the positive effect from strengthening ethylene prices. “We decided to replenish some Qatari cargoes given the competitiveness. Thai maker is very firm on the offers, however, we do expect some discounts to emerge if deals were to achieve,” a buyer said.