Qatari maker down-adjusted PE offers to China amid surging ethylene costs

Chinese players reported receiving fresh PE offers from a major Qatari producer with $10/ton reduction from last week to $1180/ton for LLDPE film and $1190/ton for LDPE film, all based on CFR China, LC AS term.

Transaction has been disappointed for these two grades as players are having a rather bearish expectation on the near-term outlook amid healthy supply in the domestic ground. “As a result, we are unable to achieve a good deal,” a source close to the producer said. The source added that continuous falling local prices are putting tremendous pressure on import market while expecting other overseas suppliers to follow the trend.

Chinese traders are surprised with the price decision, considering the recent surge in the upstream ethylene costs. “We are monitoring further development before making new purchases as market is very unpredictable at the moment,” a trader informed.