- Far East Asia origin $920-985/ton
- Middle East origin $920-980/ton
- Southeast Asia origin $910-960/ton
Comments by market players on HDPE Film as follows:
“A rally in China’s spot PE prices started to run out of stream amid a weak demand recovery and a rebound in domestic supply. As most spot PE offers remain at particularly high levels, buyers in China have turned more cautious and shun away from restocking activity. In turn, we have been unable to push up prices over the week, despite a rebound in the futures market. On the first trading day of the week, our company was still maintaining stable offer levels from a week earlier. Besides, a possible rebound in supply from two leading Chinese polyolefins producers could have dampening effects on price rally. If the digestion rate starts to slow down, the market will likely witness a reversal in price direction. In addition, China’s polyethylene demand has been very sluggish, with buyers mainly holding back on their purchases amid a traditional low season,” a Beijing-based trader reported to SSESSMENTS.COM on July 20.
“We have announced fresh offers for late August to early September shipment to the China market this week. For HDPE Film cargoes, we adjusted down the offers by $20/ton on the low-end of the price range as compared to a week earlier, available between $980-1,030/ton on LC at sight, CIF China Main Port basis. Our company quoted lower offers to the China market, citing weak market sentiment with no strong demand fundamentals to support any price increases. The move, however, failed to draw a positive response from most customers in China,” a source from a Thai PE producer informed SSESSMENTS.COM.
“As for Middle East origin, the leading Saudi polyolefins producer has announced fresh PE offers this week. The producer initiated a price reduction of $20/ton for HDPE Film as compared to last week’s level. Current offers are available at $980/ton on LC at sight, CIF China Main Port basis. Market sentiment has weakened further this week as buyers retreated to the sidelines since most offers are still sitting in high-level,” a source close to the producer informed SSESSMENTS.COM on July 21.
“From the import market, we have received August shipment offers from a Saudi producer this week. As for HDPE Film, the latest offers from the producer’s end captured at $920/ton on LC at sight, CIF China Main Port basis, or at $10/ton lower than the offer level available in a week earlier,” a global trading house said.
“This week, most suppliers are involved in rounds and rounds of price cut in a move to clear their stocks. Following a wave of price cut in the domestic market, we initiated a price reduction of between CNY100-200/ton ($14-28/ton) for localized Saudi HDPE Film cargoes as compared to last week’s level. From the import market, the leading Indonesian polyolefins producer has announced lower offers for HDPE Film to China market this week, with a total reduction of $10/ton as compared to last week’s level. The latest offers are available in the market at $910/ton on LC at sight, CIF China Main Port basis. Despite the price reduction, we regarded the offer level as high and unworkable, taking into account current offers for localized US HDPE Film cargoes available at CNY7,600/ton-level. Therefore, we will not proceed with any purchases,” a Ningbo-based trader reported.
“Uptrend in local PE prices appear to have stalled following several weeks of run-up. This week, our company is offering local HDPE Film cargoes between CNY100-300/ton ($14-43/ton) lower than the offer levels available in the previous week. Demand-wise, we noted that demand for most PE grades in China has dwindled in view of falling downstream consumption amid traditional low season,” a Shanghai-based trader revealed to SSESSMENTS.COM.
“A Thai PE producer has revised its offers further down to the China market this week. As compared to Monday, July 20, the producer’s offers for HDPE Film were slightly down by $20/ton, captured at $960/ton on LC at sight, CIF China Main Port basis. Upon receiving a good response from buyers, the producer managed to sell some volumes for HDPE Film at the initial offer level. However, other customers were still reluctant to take the cargoes as most believe prices might drop again next week. As for Indian Subcontinent cargoes, an Indian producer has yet to announce fresh offers for August shipment to the China market so far. We think that the delay might be attributed to China and India's border dispute that turned deadly for the first time in more than four decades,” one of the Chinese traders reported.
“We are fully aware that most local traders set off a round of price reduction to China market this week on the back of bearish market sentiment. However, we set different pricing strategies from other suppliers, simply because our company is focusing more on HDPE Pipe sales this week. Current offers for HDPE Film from our company are available at $970/ton on LC at sight, CIF China Main Port basis, a roll over from a week earlier. If the downtrend continue in the next week, we might consider to adjust down the offers,” a South Korean producer explained.
“One of the Iranian vessels carrying PE materials (1282) has been allowed to berth at the port of Nanshan, China. However, it is uncertain whether remaining vessels will also be allowed to dock at China ports,” sources in China revealed to SSESSMENTS.COM.
