As noted, most import PE offers to China market still maintain its bullish trend this week. A global trading house revealed to SSESSMENTS.COM that a producer based in United Arab Emirates increased offers for PE cargoes to China market. The latest offers for HDPE Blow Moulding and HDPE Film from the producer increased by $10/ton and $50/ton, respectively, both are available at $920/ton. For LDPE Film, the producer increased offers by $65/ton, now at $975/ton. All compared with the offers available in early July.
A different approach observed from another Middle Eastern producer. On a weekly comparison, the leading Saudi polyolefins producer maintained its HDPE Film offers stable while LLDPE Film C4 offers were trimmed by $30/ton. Meanwhile, the leading Indian petrochemical producer offers LLDPE Film C4 at $820/ton, no comparison available since the producer just resumed offering this grade to China market. The trader commented there is an indication that India PE market is not in the mood to accept LLDPE Film C4 offers from the producer as the company goes for the export market. All import offers on LC at sight, CIF China Main Port basis.
The trader commented that LLDPE Film C4 demand in China is not strong enough compared to HDPE Film and LDPE Film due to the delayed Iranian cargoes, hence, import LLDPE Film C4 offers are following the movements in the futures market. The trader also added to SSESSMENTS.COM that PE prices in the domestic market maintained relatively stable on the week-on-week comparison following an upward trend in the first three days of this week after dropping in late last week.
The trader pointed out there are three aspects, which can drag PE prices down in the near future. Firstly, most of the maintenance shutdowns have been finished from the domestic and foreign suppliers, hence, supply will be better in August. Secondly, delayed Iran vessels which bring PE cargoes are expected to berth at China ports in August. Thirdly, US origin PE cargoes also will arrive during that time. However, there are two positive aspects that can maintain the current firm prices. First, the inventory of the two leading Chinese polyolefins producers are quite low, which can support the local prices. Second, both new and restarting plants would not release massive volumes in August. As such, PE prices in the China market in August would only see some fluctuations within a limited range, SSESSMENTS.COM was told.
