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LDPE, LLDPE supplies diminish in China

by ChemOrbis Editorial Team -
  • 11/08/2016 (15:06)
Players in China reported that supply for LDPE and LLDPE has reduced recently particularly in the import market; however, this does not create a major concern for now as buying interest remains low ahead of the expected start of the high season for agricultural film by the end of August.

A trader reported, “Buyers continue to source on a needs only basis. Import LDPE and LLDPE supply is tight while HDPE supply is fine. This is probably due to producers’ preference to sell to other regions such as Southeast Asia in order to achieve better profit margins.”

A trader in Shanghai commented, “LDPE and LLDPE supplies are tighter for now. However, buyers still prefer to purchase domestic LLDPE as they find it more advantageous due to prompt delivery. Import PE prices may be subject to change depending on supply and demand. Meanwhile, LDPE film demand may pick up gradually in August.”

A Chinese distributor said, “Demand remains weak as players continue to source their bare minimum requirements. We are not affected by the upcoming G20 Summit because our plant is not located near Hangzhou. We have also heard that a global producer in Singapore is getting prepared for a shutdown at its LLDPE line in August. We remain uncertain about the upcoming market trend. Futures market developments will determine prices.”

Another distributor commented, “PE prices are not likely to go down as the upcoming G20 Summit will force producers to lower their operating rates or shut their plants. Therefore, supply is expected to be limited. Demand is weak with buyers sourcing only on an as needed basis. They have no plan to build extra stocks. Producers, meanwhile, have fewer inventories and no sales pressure while traders have materials on hand.”

As of this week , import LDPE prices were reported at $1113-1185/ton CIF, cash equivalent while dutiable LLDPE was reported at $1084-1173/ton and HDPE at $1084-1165/ton, with the same terms.
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