Gap between import HDPE and LLDPE hits a multi-year high in China
ChemOrbis data suggest that the premium import HDPE film prices carry above LLDPE film is currently at around $115-120/ton, the highest level since January 2012.
“Import prices for HDPE grades continue to move higher due to limited supplies, particularly from Iran and the US, while LDPE and LLDPE film prices are mostly stable to soft this week as sellers are facing stock pressure amidst the lack of purchasing activity,” a few traders commented.
In China, the overall ranges for import PE prices currently stand at $1261-1365/ton for HDPE film and at $1140-1230/ton for LLDPE film, on CIF, cash equivalent basis.
In the local market, meanwhile, the gap between HDPE and LLDPE film prices has recently reached its highest level since August 2015 to be currently standing at around $150/ton, as shown by ChemOrbis Price Index data.
A trader in China opined, “LLDPE futures are quite volatile while the upward trend of crude oil has lost steam recently. Plus, the end of the agriculture season is approaching. Considering these factors, we don’t expect LLDPE film prices to post any major gains in the near term. On the other hand, demand for HDPE grades is healthy amidst limited supplies.”
Inside China, local HDPE film prices are currently reported at CNY11,000-11,200/ton ($1417-1443/ton without VAT) on an ex-warehouse, cash including VAT basis while the overall range for local LLDPE film prices stand at CNY9,800-10,000/ton ($1263-1288/ton without VAT) with the same terms.
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