The trend in IMPORT PE prices is losing momentum in China, except for LDPE
Following a three-month fall in prices, China's import PE prices reverted in the second half of June, backed by an increase in purchases because of the oncoming September - October peak season and a trend in energy surge.
While the market has remained prudent for three consecutive weeks, the price hike of both the LLDPE and HDPE Film has recently fallen due to increased resistance from buyers. On the other hand, the LDPE Film attempted to maintain a moderate increase due to supply problems.
In China, the import price of LLDPE and HDPE film of Middle East origin remained unchanged or decreased by 10 USD/ton from last week, at 1040-1080 USD/ton and 1040-1070 USD/ton, respectively, according to CIF method , cash. Meanwhile, co-origin LDPE film prices have increased by $20/ton this week to $1250-1300/ton in a similar manner.
Supply of LDPE is scarcer than LLDPE, HDPE
“In China, the upward pace of LLDPE and HDPE has slowed down after the most recent rally, due to resistance to the upside,” said one trader. The supply of LDPE is low, while other PE grades have a stable supply. Moreover, there are not many new LDPE plants coming into operation.”
Highlighting persistent concerns regarding an expected increase in domestic supply, the trader also added: "Overall, PE supply is expected to increase in the coming months as there is less activity to protect maintenance and new plants, especially for HDPE and LLDPE grades."
In the period of July - August, new factories with a capacity of about 1.3 million tons of LLDPE/year and 1.4 million tons of HDPE/year are expected to come into operation in China.
Source: chemorbis.com
