- A Chinese trader informed SSESSMENTS.COM that last week, since the domestic demand for PE improved as supported by the firmer futures market prices, import HDPE Film, LDPE Film, and LLDPE Film C4 of Middle East origin were also increased by $20/ton on a weekly comparison. However, this week, most buyers are showing resistance toward the price increments, hence, it is rather hard to conclude deals at the moment. In the local market, the offers remain stable from a day earlier despite there are some factors that could prop up PE prices this week such as limited supply for all PE grades in some areas in China, higher crude oil prices as well as the sentiment support from government meetings. Demand-wise, the digestion rate of essential goods is quite good lately. Looking ahead, the trader opined that local PE prices most likely will fluctuate around CNY200-250/ton ($28-35/ton) in June. The trader cited reasons that could drive the movement of local PE prices in both directions in the days to come. First, declining inventory at two of the leading Chinese polyolefins producers at the beginning of June is expected to keep the prices firm, however, with the arrival of import cargoes in China, most converters will likely ask for lower prices. Second, the overall PE demand that remains sluggish as compared to last year will also heavily affect local prices.
- On the supply front, Chinese market sources shared with SSESSMENTS.COM on the latest inventory level of the two leading Chinese polyolefins producers, which is relatively low at the moment. As of Wednesday morning, May 27, the inventory stood at 735,000 tons, a reduction of 30,000 tons from a day earlier.
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