Saudi producer: China’s demand for HDPE film is stronger than other grades

Saudi producer: China’s demand for HDPE film is stronger than other grades

A major Saudi Arabia producer reportedly sold out February shipment allocation to China at the beginning of the week at $1080-1100/ton for HDPE film, $1040-1050/ton for LLDPE film and at $1060/ton for homo-PP yarn and injection, all based on CFR China, LC AS term.

The producer informed that buying interest for HDPE film in China is rather strong at the moment, as buyers need to make replenishment to cover for the delay in Iranian cargoes. 

“We have diverted up to 50% of the HDPE allocations from Southeast Asia market to China. There are still inquiries for this grade but buyers are not very excited about LLDPE or homo-PP,” a source closed to the producer added.

As reported earlier, a number of Iranian PE cargoes have been delayed for more than one month following a couple of shutdown in December. Shipment for this origin might regularize after the Lunar New Year festival; however, buyers need to make sure a safe level of inventories.

Last week, Vietnamese traders were re-exporting Thailand HDPE film to China in the price range $1110-1120/ton CFR China, LC AS term.