- Local and import offers were mostly on a positive note during June
- Overall resins demand was better compared to May
- Local and import offers expected to remain firm as feedstock prices and supply lend support
As predicted by some players quoted in previous MonthlySSESSMENTS, PE offers in China were mostly on a positive note during June. On the week commencing June 1, local and localized Saudi PE cargoes across all grades increased between CNY50-200/ton ($7-28/ton). Likewise, import offers for HDPE Film and LLDPE Film C4 of Saudi origin moved higher by $30/ton on the monthly comparison, while HDPE Pipe (100) maintained stable on a weekly basis. For Southeast Asian cargoes, offers for HDPE Film and LLDPE Film C4 from Thailand surged by $40/ton and $35/ton respectively on biweekly comparison while mLLDPE C6 offers remained unchanged from a week earlier. For LDPE Film, the Thai PE producer did not have allocations to offer.
For the second and third week of June, local PE offers were relatively stable as supported by low inventory levels of local producers and firmer feedstock prices. For localized cargoes, offers for localized HDPE Film and LDPE Film from Iran edged down between CNY50-100/ton ($7-14/ton) by the second week while localized Saudi LLDPE Film C4 were slightly up by CNY20/ton ($3/ton) due to depreciation of Chinese Yuan against US Dollar. All changes in domestic offers were on a weekly basis. For import cargoes, offers for HDPE Film, LDPE Film, and LLDPE Film C4 of Saudi origin in the second week increased by $10/ton on weekly comparison but the offers were not firm as the producer provided room for negotiation. During the same timeframe, HDPE Film and LLDPE Film C4 from a Thai producer moved higher by $30/ton and $20/ton respectively for August shipment. While in the third week of June, SSESSMENTS.COM was told that import PE offers were stable from a week earlier.
By the final week of June, a local producer was triggered to increase offers for LLDPE Film C4 between CNY75-100/ton ($11-14/ton) amid relatively tight domestic supply and firm feedstock prices. Offers for localized HDPE Film and LDPE Film of Iran origin also increased between CNY50-100/ton ($7-14/ton) due to limited supply for cargoes of this origin in China market as shipment from Iran was delayed due to new US sanctions. Likewise, import PE offers of several origins increased between $10-50/ton. All on the week-on-week comparison. While on the monthly comparison, July shipment offers for Middle Eastern cargoes went up by $90-100/ton for HDPE Film, $50-60/ton for LDPE Film and LLDPE Film C4. July shipment offers for South Korean cargoes also increased between $50-70/ton for HDPE Film and LLDPE Film C4 while HDPE Yarn moved higher by $80/ton. According to SSESSMENTS.COM database, some suppliers managed to close deals at initial levels while some could not conclude any deals due to buyers’ resistance towards high offers.
Overall demand for PE resins in China during June was considered good compared to May, but could not be considered as strong. Most buyers kept purchasing on a hand-to-mouth basis and showed resistance towards high prices. Additionally, buyers who source from imports preferred prompt delivery cargoes to anticipate a slowdown in demand ahead of the traditional season for China PE market in July-August. Moreover, buyers were not really into buying due to holiday mood, Dragon Boat Festival which took place on June 25-27. Fears of a second wave of coronavirus had also negatively affected buying sentiment since the Chinese government enforced a partial lockdown in some cities. As told to SSESSMENTS.COM, supply in China was limited since mid-May as China started selling PE cargoes to other countries, coupled with maintenance at several local PE plants.
Looking into July, the majority of market players contacted by SSESSMENTS.COM believe that local and import PE prices may continue to increase as buoyed by firm feedstock prices and limited supply. However, the amount of price increase would be curbed by a slowdown in demand as China PE market will enter a low season in July.
Transactions for local/localized PE between June 1 to June 5 on EXW China basis, including 13% VAT (all equivalent in USD excluding VAT)
| Origin | Product | Transaction Type | Offers (CNY/ton) | Equivalent in USD/ton |
|---|
| China | HDPE Blow Moulding | Price List | 7,400-7,500 | 926-939 |
| China | HDPE Film | Offer Given | 7,400-7,500 | 926-939 |
| China | HDPE Film | Price List | 7,500-7,600 | 939-951 |
| Middle East | HDPE Film | Offer Given | 7,700-7,800 | 964-976 |
| Saudi | HDPE Film | Offer Given | 7,500 | 939 |
| Thailand | HDPE Film | Offer Given | 7,800-7,850 | 976-982 |
| China | HDPE Pipe (PE 100) | Price List | 8,200-8,300 | 1,026-1,039 |
| China | HDPE Yarn | Price List | 7,000-7,100 | 876-889 |
| China | LDPE Film | Offer Given | 7,500-7,650 | 939-957 |
| China | LDPE Film | Price List | 7,400-8,000 | 926-1,001 |
| Middle East | LDPE Film | Offer Given | 7,800-7,850 | 976-982 |
| Saudi | LDPE Film | Offer Given | 7,800-7,900 | 976-989 |
| China | LLDPE Film C4 | Offer Given | 6,650-6,800 | 832-851 |
| China | LLDPE Film C4 | Price List | 6,700-7,000 | 838-876 |
| Middle East | LLDPE Film C4 | Offer Given | 6,800-7,000 | 851-876 |
| Saudi | LLDPE Film C4 | Offer Given | 7,200 | 901 |
Transactions for import PE between June 1 to June 5 on LC at sight, CIF China Main Port basis
| Origin | Product | Transaction Type | Offers (USD/ton) |
|---|
| Middle East | HDPE Film | Offer Given | 780-810 |
| Middle East | HDPE Film | Offer Received | 750 |
| Middle East | HDPE Film | Sell Idea | 850-860 |
| Southeast Asia | HDPE Film | Offer Given | 860 |
| Middle East | HDPE Pipe (PE 100) | Offer Given | 950-960 |
| Middle East | HDPE Pipe (PE 100) | Sold | 950-960 |
| Middle East | HDPE Pipe Black (100) | Offer Given | 1,050-1,090 |
| Middle East | HDPE Pipe Black (100) | Sold | 1,050-1,090 |
| Middle East | LDPE Film | Offer Given | 820-840 |
| Middle East | LDPE Film | Sold | 855 |
| Middle East | LDPE Film | Sell Idea | 880-890 |
| Indian Subcontinent | LLDPE Film C4 | Offer Received | 740 |
| Middle East | LLDPE Film C4 | Offer Given | 740-770 |
| Middle East | LLDPE Film C4 | Offer Received | 740 |
| Middle East | LLDPE Film C4 | Sell Idea | 790-800 |
| Southeast Asia | LLDPE Film C4 | Offer Given | 835 |
| Southeast Asia | mLLDPE C6 | Offer Given | 930 |
Transactions for local/localized PE between June 8 to June 12 on EXW China basis, including 13% VAT (all equivalent in USD excluding VAT)
| Origin | Product | Transaction Type | Offers (CNY/ton) | Equivalent in USD/ton |
|---|
| China | HDPE Blow Moulding | Offer Given | 7,400-7,800 | 926-976 |
| China | HDPE Blow Moulding | Price List | 7,500 | 939 |
| Russia | HDPE Blow Moulding | Sold | 7,100 | 889 |
| China | HDPE Film | Offer Given | 7,500-7,850 | 939-982 |
| China | HDPE Film | Price List | 7,500-7,600 | 939-951 |
| Iran | HDPE Film | Offer Given | 7,600-7,900 | 951-989 |
| Iran | HDPE Film | Sold | 7,500-7,600 | 939-951 |
| Russia | HDPE Film | Sold | 7,200 | 901 |
| China | HDPE Pipe (PE 100) | Price List | 8,100-8,300 | 1,014-1,039 |
| China | HDPE Yarn | Price List | 7,000-7,200 | 876-901 |
| China | LDPE Film | Offer Given | 7,700-8,100 | 964-1,014 |
| China | LDPE Film | Price List | 7,800-8,000 | 976-1,001 |
| Iran | LDPE Film | Offer Given | 7,900-7,950 | 989-995 |
| Iran | LDPE Film | Sold | 7,900 | 989 |
| China | LLDPE Film C4 | Offer Given | 6,600-6,850 | 826-857 |
| China | LLDPE Film C4 | Price List | 6,750-7,000 | 845-876 |
| Saudi | LLDPE Film C4 | Offer Received | 7,100 | 889 |
Transactions for import PE between June 8 to June 12 on LC at sight, CIF China Main Port basis
| Origin | Product | Transaction Type | Offers (USD/ton) |
|---|
| Middle East | HDPE Blow Moulding | Offer Received | 880-920 |
| Middle East | HDPE Blow Moulding | Sold | 855 |
| Middle East | HDPE Film | Offer Given | 780-860 |
| Middle East | HDPE Film | Offer Received | 850-860 |
| Middle East | HDPE Film | Sell Idea | 830-840 |
| North America | HDPE Film | Offer Given | 820 |
| Southeast Asia | HDPE Film | Offer Given | 860-900 |
| Southeast Asia | HDPE Film | Offer Received | 895 |
| Southeast Asia | HDPE Pipe (PE 100) | Offer Given | 980 |
| Middle East | LDPE Film | Offer Given | 850-910 |
| Middle East | LDPE Film | Offer Received | 885-910 |
| Middle East | LDPE Film | Sold | 855-870 |
| Southern Africa | LDPE Film | Purchased | 860 |
| Indian Subcontinent | LLDPE Film C4 | Offer Received | 740 |
| Middle East | LLDPE Film C4 | Offer Given | 750-820 |
| Middle East | LLDPE Film C4 | Offer Received | 740-810 |
| Middle East | LLDPE Film C4 | Purchased | 800 |
| Middle East | LLDPE Film C4 | Sell Idea | 780 |
| Southeast Asia | LLDPE Film C4 | Offer Given | 835-860 |
| Southeast Asia | LLDPE Film C4 | Offer Received | 855 |
| Southern Africa | LLDPE Film C4 | Purchased | 755 |
| Southeast Asia | mLLDPE C6 | Offer Given | 930 |
Transactions for local/localized PE between June 15 to June 19 on EXW China basis, including 13% VAT (all equivalent in USD excluding VAT)
| Origin | Product | Transaction Type | Offers (CNY/ton) | Equivalent in USD/ton |
|---|
| China | HDPE Blow Moulding | Price List | 7,500 | 939 |
| China | HDPE Film | Offer Given | 7,500-7,800 | 939-976 |
| China | HDPE Film | Price List | 7,600 | 951 |
| Iran | HDPE Film | Offer Given | 7,350-7,850 | 920-982 |
| Middle East | HDPE Film | Offer Given | 6,900-7,100 | 864-889 |
| China | HDPE Pipe (PE 100) | Price List | 7,950-8,050 | 995-1,007 |
| China | HDPE Yarn | Price List | 7,100-7,300 | 889-914 |
| China | LDPE Film | Offer Given | 7,800-8,200 | 976-1,026 |
| China | LDPE Film | Price List | 7,800-8,000 | 976-1,001 |
| Iran | LDPE Film | Offer Given | 8,000 | 1,001 |
| Middle East | LDPE Film | Offer Given | 8,300 | 1,039 |
| China | LLDPE Film C4 | Offer Given | 6,700-7,100 | 838-889 |
| China | LLDPE Film C4 | Price List | 6,900-7,100 | 864-889 |
| China | LLDPE Film C4 (CTO) | Sold | 6,700-6,740 | 838-844 |
| Middle East | LLDPE Film C4 | Offer Given | 7,100-7,300 | 889-914 |
| Qatar | LLDPE Film C4 | Offer Received | 7,030 | 880 |
| Saudi | LLDPE Film C4 | Offer Received | 7,120 | 891 |
Transactions for import PE between June 15 to June 19 on CIF China Main Port basis
| Origin | Product | Transaction Type | Offers (USD/ton) | Payment Term |
|---|
| Far East Asia | HDPE Film | Offer Given | 870 | LC 90 days |
| Far East Asia | HDPE Film | Sold | 870 | LC 90 days |
| Middle East | HDPE Film | Offer Given | 840-860 | LC at sight |
| Middle East | HDPE Film | Offer Received | 850-870 | LC at sight |
| North America | HDPE Film | Offer Given | 820-830 | TT |
| North America | HDPE Film | Offer Given | 820 | LC at sight |
| Southeast Asia | HDPE Film | Offer Received | 900 | LC at sight |
| Southeast Asia | HDPE Film | Sold | 850 | LC at sight |
| Southeast Asia | HDPE Pipe (PE 100) | Offer Received | 930 | LC at sight |
| Central Asia | HDPE Yarn | Offer Given | 780-800 | LC at sight |
| Southeast Asia | HDPE Yarn | Offer Received | 850-860 | LC at sight |
| Middle East | LDPE Film | Offer Given | 880-900 | LC at sight |
| Middle East | LDPE Film | Offer Received | 885-910 | LC at sight |
| Middle East | LLDPE Film C4 | Offer Given | 790-800 | LC at sight |
| Middle East | LLDPE Film C4 | Offer Received | 800-810 | LC at sight |
| North America | LLDPE Film C4 | Offer Received | 800 | LC at sight |
| Southeast Asia | mLLDPE C6 | Offer Received | 930 | LC at sight |
Transactions for local/localized PE between June 22 to June 26 on EXW China basis, including 13% VAT (all equivalent in USD excluding VAT)
| Origin | Product | Transaction Type | Offers (CNY/ton) | Equivalent in USD/ton |
|---|
| China | HDPE Film | Offer Given | 7,700-8,000 | 964-1,001 |
| Iran | HDPE Film | Offer Given | 8,000-8,100 | 1,001-1,014 |
| China | LDPE Film | Offer Given | 8,200-8,400 | 1,026-1,051 |
| Iran | LDPE Film | Offer Given | 8,500 | 1,064 |
| China | LLDPE Film C4 | Offer Given | 6,900-7,200 | 864-901 |
Transactions for import PE between June 22 to June 26 on LC at sight, CIF/CFR China Main Port basis
| Origin | Product | Transaction Type | Offers (USD/ton) |
|---|
| Qatar | HDPE Film | Offer Received | 880-885 |
| Saudi | HDPE Film | Offer Given | 880 |
| Saudi | HDPE Film | Offer Received | 850-920 |
| Saudi | HDPE Film | Purchased | 850-860 |
| South Korea | HDPE Film | Offer Received | 900 |
| Taiwan | HDPE Film | Offer Received | 910 |
| Thailand | HDPE Film | Offer Given | 930 |
| Thailand | HDPE Film | Offer Received | 930 |
| South Korea | HDPE Pipe (PE 100) | Offer Received | 940 |
| Thailand | HDPE Pipe (PE 100) | Offer Given | 960 |
| Thailand | HDPE Pipe (PE 100) | Offer Received | 960-970 |
| India | HDPE Yarn | Price List | 845-865 |
| South Korea | HDPE Yarn | Offer Received | 860-870 |
| South Korea | HDPE Yarn | Purchased | 860 |
| Taiwan | HDPE Yarn | Offer Received | 900 |
| Qatar | LDPE Film | Offer Received | 910-915 |
| Saudi | LDPE Film | Offer Received | 940 |
| South Africa | LDPE Film | Offer Received | 900 |
| Qatar | LLDPE Film C4 | Offer Given | 830 |
| Qatar | LLDPE Film C4 | Offer Received | 800-830 |
| Saudi | LLDPE Film C4 | Offer Given | 830 |
| Saudi | LLDPE Film C4 | Offer Received | 800-820 |
| Saudi | LLDPE Film C4 | Purchased | 800 |
| South Africa | LLDPE Film C4 | Offer Received | 775-780 |
| South Korea | LLDPE Film C4 | Bid Received | 805 |
| South Korea | LLDPE Film C4 | Offer Given | 855 |
| South Korea | LLDPE Film C4 | Offer Received | 830 |
Transactions for local PE between June 29 to June 30 on EXW China basis, including 13% VAT (all equivalent in USD excluding VAT)
| Origin | Product | Transaction Type | Offers (CNY/ton) | Equivalent in USD/ton |
|---|
| China | HDPE Blow Moulding | Price List | 7,600-7,700 | 951-964 |
| China | HDPE Film | Price List | 7,800 | 976 |
| China | HDPE Pipe (PE 100) | Price List | 8,000 | 1,001 |
| China | HDPE Yarn | Price List | 7,300-7,500 | 914-939 |
| China | LDPE Film | Price List | 8,350-8,400 | 1,045-1,051 |
| China | LLDPE Film C4 | Offer Given | 7,225-7,300 | 904-914 |
| China | LLDPE Film C4 | Price List | 7,000-7,100 | 876-889 |
Transactions for import PE between June 29 to June 30 on CIF China Main Port basis
| Origin | Product | Transaction Type | Offers (USD/ton) | Payment Term |
|---|
| Saudi | HDPE Film | Offer Given* | 860-870 | LC at sight |
| South Korea | HDPE Film | Offer Given | 920 | LC at sight |
| Thailand | HDPE Film | Offer Received | 950*** | LC 90 days |
| India | HDPE Yarn | Sold | 860 | LC 90 days |
| Thailand | LLDPE Film C4 | Offer Given** | 870 | LC at sight |
| Thailand | LLDPE Film C4 | Offer Received | 870 | LC 90 days |
| Thailand | LLDPE Film C4 | Sold** | 870 | LC at sight |
Description: *July shipment **July to August shipment ***Has been withdrawn
Tags: Asia Pacific,China,English,Monthly,NEA,PE
Published on July 1, 2020 2:04 PM (GMT+8)
Last Updated on July 1, 2020 2:04 PM (GMT+8)
