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SE Asia’s LDPE market regains its premium over China

by ChemOrbis Editorial Team -
  • 10/02/2017 (07:03)
According to players in China and Southeast Asia, PE markets in both regions opened the post-holiday period on a firmer note amidst supply concerns. However, China’s LDPE film market lagged behind the visible gains in Southeast Asia, with its import market tracking a stable to slightly softer trend following the end of the holiday. Players attributed the post-holiday LDPE outlook in China to lack of demand as prices were already found to be too high two weeks ago.

Data from ChemOrbis Price Index reveals that Southeast Asia’s import LDPE film market started to regain its premium over China by mid-January while the premium has become more visible since the end of the Chinese New Year holiday to be currently standing at $40/ton.

Prior to mid-January, China’s LDPE film market had been traded significantly above import levels in Southeast Asia for three consecutive months, the longest period that Southeast Asia is traded below China since 2008 when ChemOrbis began keeping records.

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