A Chinese trader shared with SSESSMENTS.COM on having difficulties in selling PE cargoes due to the lack of support from the downstream market. “Although the current price level still leaves a profit margin, however, most Chinese traders, including our company, are currently having a hard time as sales volume remain small on the back of sluggish demand from downstream factories,” the trader explained.
As of April 20, the trader’s offers for local and localized LLDPE Film C4 cargoes of Saudi origin dropped between CNY200-300/ton ($28-42/ton) from last Friday’s level. For local LLDPE Film C4 cargoes, the offers are available at CNY6,500-6,650/ton ($919-940/ton) while for localized Saudi LLDPE Film C4 for prompt delivery stand at CNY7,000/ton ($990/ton). All offers are on cash, EXW China basis, and including 13% VAT, as SSESSMENTS.COM noted. From the import market, market talks have it that the deals for US LLDPE Film C4 cargoes concluded at $650-670/ton on LC at sight, CIF China Main Port basis.
Pertaining to the outlook, the trader opined to SSESSMENTS.COM that LLDPE Film C4 prices will still have room to decrease further considering the volatile crude oil prices and the ethylene price which have broken below $400/ton-level.
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