Singaporean producer slashes PE offers to China

A major Singaporean producer has announced PE offers to China with large decreases from the previous week, in line with the downtrend in this market. The latest prices see $150/ton dropped in LLDPE C4 film to $1180/ton while metallocene PE (mPE) fell $50-80/ton to $1470-1500/ton, all based on CFR China term.

In the meantime, the supplier has also reduced offers for cargoes from the Saudi Arabia plant, though the extent of reduction is much smaller than cargoes from the Singapore plant. Such a move indicates that the market might be stabilizing at the lower end of the overall price range, while the upper end would face pressure to come down. 

The maker’s offers for cargoes from Saudi Arabia plant are as follows:

In both cases, Chinese buyers become reluctant to proceed with new purchases after the active buying activities in late last week. “Customers have secured the needed cargoes and decided to slow down slightly to monitor further development. With Muslim markets entering the Ramadan holiday, suppliers are all putting attention in China to deplete cargoes,” a market source said.