Gap between PE prices narrows in SEA and China
HDPE film on a CFR SEA basis currently carries a premium of around $20/ton relative to prices on a CFR China basis, a significant drop the premium of around $110/ton recorded at the beginning of May, which was the highest seen so far in 2016.
Source: ChemOrbis Price Wizard
Players are keeping to the sidelines in Southeast Asia for now due to the low season as well as expectations of additional declines. In China, players started to replenish their stocks at the end of May or the beginning of June as they were running out of material. However, they are buying in smaller quantities and many deals are being concluded with discounts. A trader commented, “We are seeing more Iranian cargoes, including HDPE film, HDPE injection and LLDPE film entering the Chinese market these days.”
Import HDPE film prices are currently being quoted at $1059-1143/ton to China and at $1080-1160/ton to Southeast Asia, both on a CIF/CFR, cash equivalent basis.
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