Import PE market in China remains firm after the National Day
Import PE market in China remains firm after the National Day
The import PE market in China remains on a firm note as buyers resume trading after the weeklong National Day holiday. At the time this report is published, import HDPE, LLDPE and LDPE film to China have averagely increased by $20-25/ton compared to the pre-holiday period, data from CommoPlast showed.
The Average Import HDPE film is plotted on the secondary axis in the red colour
It is interesting that purchasing interest for PE is not as strong as PP given the fact that buyers are very cautious about large buy looking at the sharp reduction in the upstream ethylene market over the past week.
A major Thailand maker implemented $10/ton increased on HDPE and LDPE cargoes, lifting latest offers to $1360/ton for HDPE film and $1160/ton for LDPE film, all based on CFR China, LC AS. Deals have been materialised at $10/ton reduction from the initial price list, however, buyers are not too eager.
In the meantime, Qatari cargoes emerged at $1130/ton for LLDPE film and $1140/ton for LDPE film, slightly increased from the pre-holiday period. “Unfortunately, there are no ready quantity available. We were informed that material would only be ready by next week,” a buyer informed.
There are also a couple of transactions for Indian LLDPE film seen at $1110-1120/ton CFR China, LC AS term, which many players regarded as special deals and not represent the actual market condition.
“We have not been able to find many cargoes priced below $1300/ton for HDPE film and $1130/ton for LLDPE film this week. Most sellers are attempting to hold firm on the cargoes with the support from surging local spot and futures markets,” a market source said.
Looking ahead, players expect the import market to retain the stable to slightly firmer levels if domestic ground continues to strengthen. Demand shall gradually pick up given the peak season from the packaging and the agricultural film sector, sources said, and therefore, the impact of the plunging ethylene costs might be mitigated to a certain extent.