Import LDPE, LLDPE prices almost back at par with ethylene in China
Spot ethylene prices on CFR Far East Asia basis traded with an average premium of around $185/ton over LDPE and LLDPE film prices on CFR China basis during the May-September period. However, this unbalanced premium has recently decreased to around $5-10/ton as ethylene prices in Asia have witnessed sizeable decreases since the end of August, hitting a 15-month low recently.
Data suggest that the weekly average of spot ethylene prices on CFR Far East Asia basis has recorded a cumulative decrease of around $250/ton since the downward trend kicked off in around end-August.
In the meantime, China’s import LDPE and LLDPE film markets mostly hovered around their pre-National Day holiday levels last week. This was despite the fact that major domestic producers intended to increase their offers due to higher futures and lower-than-expected supplies.
A major Saudi producer announced its October LDPE prices to China with a $10/ton decrease while applying rollovers or $10/ton hikes on LLDPE. Traders noted that demand towards LLDPE was gradually improving thanks to the agricultural season. “However, buyers are still hesitant to make large-scale purchases from the import market given their ongoing concerns about currency depreciations amid the US-China trade war,” a player commented.
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