Middle Eastern PE cargoes were adjusted in order to compete in China market, however, Chinese buyers remain unmoved as several factors hindered procurement activities. A Taiwanese-based trader contacted by SSESSMENTS.COM stated that offers for import PE cargoes were adjusted down from last week. On April 1, LLDPE Film C4 cargoes from the leading Saudi polyolefins producer were available at $730/ton on LC at sight, CIF China main port basis. However, within a day interval, the offers decreased by $30/ton. For Kuwaiti LLDPE Film C4 cargoes, the offers dipped by $50/ton as compared to last week’s level.
Despite the notable downward price correction, buyers are still giving a cold response. The trader explained to SSESSMENTS.COM that there are several factors hinder buyers from procuring. First, is the shipment delay as Ningbo and Malaysia ports are not fully operating, hence, disrupting the delivery process. Meanwhile, shipping from Taiwan and Singapore ports is costlier, which is higher by $60/ton. Second, the slow economy in the global market in the midst of the Coronavirus outbreak. Additionally, the expectation of further lower prices lingers. Buyers believe that the current offers have not touched the bottom. As such, most are waiting for further reduction and halt replenishment activities.
