Major Chinese polyolefins producers’ inventory supports the current PE price trend in the domestic China market, a local trader told SSESSMENTS.COM. According to the trader, the producers have relatively low inventory at the moment. Such a level provides a cushion for the uptrend in local and localized PE offers initiated by upward movements in the futures market at the beginning of the week. Compared to last week, local LLDPE Film C4 offers increased by CNY50/ton ($7/ton) while HDPE Film and LDPE Film offers went up by CNY100/ton ($14/ton). As for imports, there are no fresh offers from the Middle Eastern producers due to Eid Al-Fitr holiday. Meanwhile, on the trader’s end, offers for PE cargoes across all grades of Middle East origin remain stable compared to the same period.
Pertaining to demand from the converters, the trader commented to SSESSMENTS.COM that the buying sentiment is still weak. However, the trader believes that demand will improve week by week in line with improvements in end products sales in the local market. The trader also opined that PE prices will be stable in the near term as negative crude oil prices are expected not to surface again in June.
Click below to view related stories and content on China PE:
PlantsSSESSMENTS: Zhejiang Petrochemical Started Up Acrylonitrile Plant
