A Chinese trader contacted by SSESSMENTS.COM informed that local and import PE prices in the market are moving in tandem. In the local market, LLDPE Film C4 prices increased between CNY50-100/ton ($7-14/ton) as of June 15, due to the upward movement in the futures market. The firm ethylene prices and the relatively low inventory of the two leading Chinese polyolefins producers count as supporting factors behind the upward trend. While from the downstream market, buyers are still showing a stiff resistance towards the high-end prices as they believe local PE prices will be on the downtrend in the near term. The arrival of imported materials previously purchased at lower costs, coupled with the additional output from the new PE plants are expected to drag local PE prices down.
Similarly, PE prices in the import market also showed an upward trend. Last week, Middle Eastern HDPE Film and LDPE Film increased by $20/ton, while for LLDPE Film C4 increased between $15-20/ton, all compared to offers at the beginning of June. The deals for LLDPE Film C4 were limited, while for LDPE Film, buyers procured on an as-needed basis. For HDPE Film the trader gained a different response. “Currently, re-exporters are starting to sell in the market actively. It seems like the orders from converters in the export market have been improved a lot, as such, demand for HDPE Film is quite healthy. For US cargoes, market talks have it that a producer has cancelled thousand tons of HDPE Film orders from the China market,” as stated to SSESSMENTS.COM.
