A South Korean producer received mixed responses from Chinese buyers for July shipment offers. As reported by a source close to the company, the producer has started offering HDPE Film for July shipment to the China market this week. In comparison to the offer available on May 26, current offers from the producer are available at $50/ton higher, captured at $870/ton with some deals closed at the initial offer level. Offers are on LC 90 days, CIF China Main Port basis. “The producer has stopped offering HDPE Film materials to China market for 20 days,” the source added to SSESSMENTS.COM.
Regarding the response, the source told SSESSMENTS.COM that feedback from buyers in South and East China is in contrast with North China. In the North part of the country, July shipment offers from the producer gained positive responses from the buyers. To date, the producer found no difficulties in selling the materials to the region, since the company were still able to move some cargoes. Besides, most of the customers in the region are converters; hence, more willing to stock up the materials. While in South and East China, the producer received cold responses from the buyers. Buyers in these regions who are mostly traders and hedgers are reluctant to take the cargoes and are showing stiff resistance towards high prices, citing a thin profit margin.
