US and European PE show up at competitive levels in China
The emergence of competitive European origins was attributed to the fact that the Chinese LDPE film market is offering better netbacks to global sellers at the moment. The market, for example, is now carrying a visible premium of almost $100/ton over import LDPE film levels in Southeast Asia, the largest since April 2009 as ChemOrbis Price Index data shows.
In China, the overall range for import LDPE film prices is currently quoted at $1320-1410/ton on a CIF, cash equivalent basis. Within the range, US LDPE film cargoes are offered at $1380/ton CIF, cash.
Meanwhile, US origin HDPE film offers are currently offering a competitive edge, standing at $1108-1165/ton CIF China, cash equivalent basis. The low end of the overall import HDPE film range witnessed a weekly decrease of $30/ton due to the emergence of US offers to be currently pegged at $1108-1195/ton CIF, cash equivalent basis.
A trader noted, “US suppliers are trying to divert their cargoes to China where they can achieve better netbacks.” A second trader also commented, “Both European and US sellers will focus on depleting their stocks in the near term given the approaching year end. Hence, they are now looking for profitable export destinations and China stands as an attractive option given the current high price levels.”
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