As the prices and demand in global energy sector crumpled on the back of spike in coronavirus cases, sources said price war starts to develop in China market. In the week commencing March 30, import HDPE offers to China recorded hefty reductions of up to $80/ton compared to levels from a week earlier whilst in neighbouring country, Vietnam, a triple digit decline was reported to SSESSMENTS.COM for Saudi HDPE Film cargoes.
On April 1, market participants in China stated that the latest offers from United Arab Emirates producer surfaced below $650-level. The HDPE Film cargoes of United Arab Emirates origin were offered at $640/ton and deals concluded at the initial offer level. Week over week comparison, the producer’s offer is $80/ton lower from a week ago. During the same timeframe, SSESSMENTS.COM was told that a Malaysian producer also approaches China market in head-to-head competition with United Arab Emirates producer, offering HDPE Film cargoes at the lowest end of the price range, at $640/ton with the same payment and delivery term. Meanwhile, Thai producer is yet to make a bold move on lowering their offers to China, remaining at $800/ton.
According to SSESSMENTS.COM pricing database, the lowest available offers in the previous week stood at $720/ton on LC at sight, CIF China main port basis for of Japan, Qatar and United Arab Emirates origin.
