China’s HDPE film market hits 27-month high
A converter in the country said, “We requested for 600 tons of HDPE blow moulding from our Qatari supplier, yet they were only able to provide 300 tons of material to us.”
A few traders commented, “We are still facing some shipment delays regarding Iranian HDPE cargoes while domestic supplies are also limited amidst healthy demand for film and pipe grades.”
As a result of the recent significant gains, the weekly average of local HDPE film prices in China has moved above LDPE film for the last three weeks. As can be seen in the graph below created by ChemOrbis Price Wizard, the weekly average of local HDPE film prices is currently carrying an unusual premium of $57/ton over local LDPE film prices. The last time China’s local HDPE film market moved above LDPE film was February 2015.
In the import market, HDPE film prices also gained a small premium of $10-15/ton over LDPE film prices this week for the first time since June 2016. Initial November prices from the Middle East surfaced with significant increases for HDPE film due to the ongoing tightness while LDPE film only witnessed some modest gains.
A Saudi major announced its November HDPE film prices with a hefty increase of $100/ton from October while applying only a slight hike of $10/ton on its LDPE film offers.
An agent of the producer, however, said, “The producer’s HDPE tightness has eased recently while overall supplies from Iran and the Middle East are likely to increase gradually next month. Therefore, we have concerns about the producer’s new HDPE film offer, which might be too high if we consider the season. We are planning to focus more on LDPE, LLDPE and PP in November.”
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