Comments by market players on HDPE Film as follows:
“The upward trend for HDPE offers is not sustained longer than two days after the Labor holiday ends. Coming to Monday (May 11), the decline in the futures market resulted in the drop in the spot market with local prices dropped by CNY100/ton ($14/ton) from the last trading day. For import offers, we adjusted down the offers by $5-10/ton as compared to the same period. China's local market is almost fully recovered with digestion rate for finished goods improving week by week, although buyers still purchase on a hand-to-mouth basis. However, the oversupply has not changed and would depress prices. So looking ahead, PE price movements will follow the market trend,” a Chinese trader shared with SSESSMENTS.COM.
“Traders’ bag HDPE Film of US origin is offered at $755/ton on LC 90 days, CIF China main port basis, increased by $10/ton from last week. Even though there is an upward price adjustment, sentiment in the local market is not good with localized prices captured dropped between CNY100-150/ton ($14-21/ton) this week. With futures prices dropping again, we believe that today’s market won’t be very active, and within this week the import prices will be revised down back,” a Chinese trader reported on May 12.
“This week we received the latest import offers from a Thai PE producer for HDPE Film cargoes at $820/ton on LC at sight, CIF China main port basis. We are also trying to sell Middle East origin PE cargoes which will arrive at the port soon, but the demand has subsided. With the softer futures prices in the last two days following slow consumption of plastic package goods after export orders slump due to the Coronavirus outbreak, customers are taking a wait-and-see stance. In general, the outlook for the PE market is not positive. Even though the current prices are on an upward trend, it would not sustain without a strong demand to support," the trader told SSESSMENTS.COM.
“Our latest offers to China market stand at $810/ton for HDPE Film, down by $10/ton from yesterday's price in order to follow the market trend,” a Thai producer informed SSESSMENTS.COM on May 12.
“This week we are offering HDPE Film at $820/ton on LC at sight, CIF China main port basis. No price comparison because we did not have offers last week,” a source from a Saudi producer informed SSESSMENTS.COM on May 13.
“Middle Eastern producers announce their June shipment offers earlier than usual. Offers from Saudi producers for HDPE Film at a range between $735-760/ton, $5/ton lower on the high-end of the price range. Meanwhile, a Qatari producer offers HDPE Film at $750/ton, up by $20/ton. All on LC at sight, CIF China Main Port basis and price changes compared to May shipment offers. Customers are closing the deals for Qatari materials, but we cannot disclose the price. The driving factors for Middle Eastern producers to announce June shipment offers earlier than usual are: 1) The Middle Eastern producers will be away from their desks as Eid Al-Fitr holiday is drawing closer; 2) Supply is in a tight situation; 3) To achieve the sales target before Eid Al-Fitr holiday as China market’s prices are currently on an uptrend, and it seems will be stable in the near term. We think PE prices in the China market are more likely stable during May as supported by the firm crude oil and ethylene prices,” a global trading house commented.
“We received an offer from another trader for Philippines HDPE Film cargoes at $775/ton on LC at sight, China main port basis for 500-1,000 tons. We skipped purchases because the offer was too high,” a trader revealed on May 15.
“As of Friday morning, May 15, the inventory level of the two leading Chinese polyolefins producers recorded at 860,000 tons, a decrease of 20,000 tons compared to Thursday’s level. When compared to Monday’s level, it showed a reduction of 80,000 tons,” market sources in China reported to SSESSMENTS.COM.
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Tags: Asia Pacific,China,English,NEA,News,PE
Published on May 18, 2020 1:16 PM (GMT+8)
