Singaporean metallocene PE extended weakening trend in China

Chinese players reported having receiving fresh weekly metallocene PE (mPE) offers from a major Singaporean producer at $20/ton reduction from last week to $1310-1330/ton, CFR China, LC AS term. The maker’s LLDPE film offers means for bundling with mPE are available at $1170/ton with the same term.

Response from the market is not very clear at the moment as buyers are still judging the impact of price reduction against the depreciation of the local currency. “In the meantime, we are still having some cargoes on hand and demand is not strong until agriculture season kick-start alongside with the packaging demand. However, the supplier’s LLDPE film cargoes are rather competitive,” a local trader, commented. 

Demand for import materials in China has been dampened by the depreciation of Chinese Yuan in recent days while the looming trade war between China and the USA also has a psychological effect on converters here.