Chinese HDPE film market is happening, but again, grade and price matter!

Without an official offers from a major Thailand producer this week, Chinese traders open prices for Thailand HDPE film at $1180-1195/ton CFR China, LC AS term – a $20-35/ton higher than the official price list announced on 15 January. There is no doubt that buyers refused to accept such price despite the tightness condition in the local ground.

Arbitrage windows have opened for Vietnamese players, who reportedly sold some quantity of this grade based on re-export basis at $1110-1120/ton CFR China and inquiries are growing toward the end of the week. 

“We have re-exported 500 tons this week for Thailand HDPE film. Chinese buyers are not interested in other cargoes,” a Vietnamese trader informed.

Several Chinese buyers informed CommoPlast that they are actively contacting sources in Vietnam to ask for this material at the same price, hoping to obtain some cargoes before going off for Lunar New Year. A source said, “This grade is very short in China market, but for other cargoes, it is difficult to accept prices above the $1100/ton threshold.” 

Ones might ask why is the strong demand for the specific Thailand HDPE film cargoes? Going back to the beginning of the month, when Chinese buyers actively searching LDPE film cargoes to replace the delay in Iranian cargoes, they also looked for HDPE film. However, nothing was as competitive as what Vietnamese traders are offering at the moment. 

It is expected that the Thai HDPE film ‘fever’ might soon ease, as Iranian material arrivals are set to normalize by mid of February. “Therefore, we are very selective when it comes to prices at the moment,” another Chinese buyer added.