A Chinese trader voiced out to SSESSMENTS.COM that the upcoming arrival of PE cargoes from overseas will ignite further price adjustment. This week, the trader is only offering local and localized Iranian PE cargoes to the domestic market. As compared to last week’s level, offers for both local and localized cargoes went down between CNY50-100/ton ($7-14/ton). The trader told that the company is still able to conclude deals as some converters still have relatively low inventory on their hands. Therefore, the trader decided to lower their offers to lure buyers, citing that once the prices are softening, the converters will likely make procurements.
From the trader’s side, the company reportedly has purchased some PE cargoes of US origin and the cargoes are expected to arrive in the China market in September. The trader further added to SSESSMENTS.COM that US cargoes are deemed overpriced as of recent. However, the level could not be ascertained since the trader was already making procurement beforehand and did not bother to ask the current offers.
Looking ahead, the trader worried that buyers would not be interested in taking US cargoes since market talks about US cargoes is not too well lately, SSESSMENTS.COM was told. Besides, at the end of June and early July, there will be several hundred thousands of imported cargoes, including from US and India, will arrive in the China ports. Due to this, the trader believes that the arrival of these cargoes will eventually drag PE prices to move further down.
