Local LDPE prices reach nearly one-year high in China
Players claimed that Shenhua delayed the start up of a new 450,000 tons/year LDPE plant and this has recently exacerbated the ongoing local tightness. Meanwhile, availability from regular sources in the import market is also low. “There are fewer than usual offers from the Middle East, SEA and S. Korea,” commented a distributor.
A trader in Ningbo made similar comments by saying, “Players did not stock material in anticipation of the start up of Shenhua’s new LDPE plant and now they have to come back to replenish due to the delayed start up of this plant. Therefore, demand is picking up for this product.”
Another trader also commented, “Demand for LDPE film is the strongest compared to HDPE and LLDPE film. Apart from that, two other producers also delayed the start up of their new LDPE plants this year. We expect LDPE prices to post further gains.”
According to ChemOrbis Price Index, current LDPE prices hit almost a year-high on average. The local LDPE market gained a USD equivalence of $22/ton on average this week while the cumulative gain of the past 6 weeks corresponds to a USD equivalence of $74/ton.
This week, local LDPE prices were reported at CNY9700-10450/ton ($1244-1340/ton excluding VAT) on ex-warehouse China, cash including VAT basis. Meanwhile, import offers stand at $1170-1215/ton on CIF China, cash.
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