Middle Eastern PE remains firm in China; buyers are slowing down

Major Middle Eastern suppliers remain firm on import PE offers to China following the improved demand condition observed in the previous weeks while upstream ethylene costs hold strong. However, buyers started to slow down following weeks of constant price firming up. 

The latest price list from a Saudi Arabia producer stands at $1310/ton for HDPE film, $1300/ton for HDPE blow moulding, $1450/ton for HDPE pipe and $1170/ton for LDPE film, all based on CFR China, LC AS term.

“Due to the lack of availability, our supplier is holding very firm on the offers. Many buyers are trying to negotiate for some discounts, especially on LDPE film cargoes and currently waiting for the supplier’s feedback,” a distributor informed.

Another producer announce new offers at $1310/ton for HDPE film and $1120/ton for LLDPE film with the same shipment and payment term. There has been information that the producer is not having large quantity for HDPE film due to healthy sales result in other market. 

“We managed to obtain $5/ton discount on import LDPE film from another Middle Eastern. Market is firm, however, we prefer not to take action too quickly to have sufficient time to monitor the market,” a buyer commented.

Other sources said that market needs a brief break from the constant firming trend observed in the market over the past weeks before the preparation for the year-end season give demand another boost.