A Chinese trader contacted by SSESSMENTS.COM highlighted buyers’ preference in procurement activity ahead of the traditional low season. On a weekly comparison, an upward adjustment of between CNY100-200/ton ($14-28/ton) was recorded mostly for HDPE Film and HDPE Injection with high MFI (Melt Flow Index). While for LDPE Film and LLDPE Film C4, SSESSMENTS.COM was informed that the offers are kept stable from last week as the market is still rather volatile. Although the market was better in the last two weeks as supported by the firmer feedstock prices, the trader noted that for import cargoes, buyers were only showing good interest in prompt delivery cargoes. Especially for the cargoes that already available in the bonded warehouse at the ports.
As explained further to SSESSMENTS.COM, buyers are still willing to make procurement for the early-June shipment cargoes. While for the late June shipment, buyers are showing less interest. The trader revealed that customers are cautious as they are unsure whether the market will remain good in July-August, which is the traditional low season for PE. Hence, most buyers prefer shorter shipment period in making procurements. On the supply side, tightness for LDPE Film grades was reported at Iran’s Amir Kabir Petrochemical Company due to the feedstock shortage, the trader said. Pertaining to the outlook, the trader opined that China market will most likely remain stable throughout June.
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