Import PE increases lose momentum in China, except for LDPE
While the sentiment has remained cautiously firm for the third straight week, the pace of gains has slackened for both LLDPE and HDPE film recently due to growing resistance on the buyers’ side. LDPE film, on the other hand, has managed to maintain moderate gains due to availability issues.
In China, import LLDPE and HDPE film prices for Middle East origin have been flat to $10/ton from last week to stand at $1040-1080/ton and $1040-1070/ton, on CIF, cash basis, respectively. LDPE film prices for the same origin, meanwhile, have been up by $20/ton on the week to stand at $1250-1300/ton with similar terms.
Supply for LDPE tight relative to LLDPE, HDPE
“In China, the pace of increases has slowed down for LLDPE and HDPE film after the latest firming as there is resistance against price hikes. Supply for LDPE is low while it is normal for other PE grades. Moreover, there is not much new LDPE capacity coming on stream,” a trader said.
Underlining the lingering woes regarding the expected supply increase in the country, the trader also added, “Overall, the PE supply is expected to rise in the coming months due to less turnaround and new start-ups especially for HDPE and LLDPE grades.”
In the July-August period, new capacities of around 1.3 million tons/year of LLDPE and 1.4 million tons/year of HDPE are expected to become operational in China.
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